Victory Variable Insurance Funds N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:			811-08979
Victory Variable Insurance Funds
(Exact name of registrant as specified in charter)
4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio					44144
(Address of principal executive offices)					(Zip code)
Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, Ohio 43219
(Name and address of agent for service)
Registrant’s telephone number, including area code:				800-539-3863
Date of fiscal year end:	December 31
Date of reporting period:		June 30, 2018

Item 1.  Reports to Stockholders.

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory INCORE Investment Quality Bond VIP Series

www.vcm.com

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable
Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	11
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Financial Statements	15
Supplemental Information
Trustee and Officer Information	26
Proxy Voting and Form N-Q Information	29
Expense Examples	29
Portfolio Holdings	31
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

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Victory Variable Insurance Funds
Victory INCORE Investment Quality Bond VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Asset Backed Securities (7.3%)
AmeriCredit Automobile Receivables Trust , Series 2018-1, Class B, 3.26%, 1/18/24, Callable 10/18/21 @ 100	$	1,000,000	$	994,801
AmeriCredit Automobile Receivables Trust , Series 2017-2, Class B, 2.40%, 5/18/22, Callable 11/18/20 @ 100 (d)		3,560,000		3,500,448
Avis Budget Rental Car Funding (AESOP) LLC , Series 2014-1, Class A, 2.46%, 7/20/20 (a) (d)		4,000,000		3,981,708
CarMax Auto Owner Trust , Series 2015-3, Class B, 2.28%, 4/15/21, Callable 10/15/19 @ 100		3,225,000		3,195,936
Drive Auto Receivables Trust , Series 2017-BA, Class B, 2.20%, 5/15/20, Callable 6/15/20 @ 100 (a)		1,158,945		1,158,264
Drive Auto Receivables Trust , Series 2017-1, Class B, 2.36%, 3/15/21, Callable 7/15/20 @ 100		2,685,000		2,681,676
Drive Auto Receivables Trust , Series 2017-3, Class B, 2.30%, 5/17/21, Callable 10/15/20 @ 100		1,655,000		1,649,952
DT Auto Owner Trust , Series 2017-2A, Class B, 2.44%, 2/15/21, Callable 9/15/20 @ 100 (a)		3,180,000		3,173,459
DT Auto Owner Trust , Series 2017-3A, Class B, 2.40%, 5/17/21, Callable 2/15/21 @ 100 (a)		1,880,000		1,871,788
Fairway Outdoor Funding LLC , Series 2012-1A, Class A2, 4.21%, 10/15/42, Callable 10/15/18 @ 100 (a) (d)		4,192,771		4,199,065
Popular ABS Mortgage Pass-Through Trust , Series 2005-2, Class AV1B, 2.35%, (LIBOR01M+26bps), 4/25/35, Callable 9/25/19 @ 100 (b)		911,784		904,235
Santander Drive Auto Receivables Trust , Series 2018-2, Class B, 3.03%, 9/15/22, Callable 7/15/22 @ 100		4,250,000		4,223,943
Santander Drive Auto Receivables Trust , Series 2017-2, Class B, 2.21%, 10/15/21, Callable 7/15/20 @ 100		4,123,000		4,096,353
Santander Drive Auto Receivables Trust , Series 2016-3, Class C, 2.46%, 3/15/22, Callable 7/15/20 @ 100 (d)		7,365,000		7,317,320
Santander Drive Auto Receivables Trust , Series 2017-3, Class B, 2.19%, 3/15/22, Callable 1/15/21 @ 100		3,495,000		3,448,758
Santander Retail Auto Lease Trust , Series 2018-A, Class B, 3.20%, 4/20/22, Callable 3/20/21 @ 100 (a)		3,825,000		3,797,659
Total Asset Backed Securities (Cost $50,476,798)				50,195,365
Collateralized Mortgage Obligations (3.1%)
Commercial Mortgage Trust , Series 2012-CR4, Class B, 3.70%, 10/15/45 (a)		4,580,000		4,487,534
DBUBS Mortgage Trust , Series 2011-LC1A, Class A3, 5.00%, 11/10/46 (a) (d)		4,500,000		4,635,603
GS Mortgage Securities Trust , Series 2012-GC6, Class B, 5.84%, 1/10/45 (a) (b) (d)		3,250,000		3,452,963
Morgan Stanley BAML Trust , Series 2013-C13, Class A2, 2.94%, 11/15/46 (d)		5,806,592		5,805,687
WF-RBS Commercial Mortgage Trust , Series 2012-C6, Class B, 4.70%, 4/15/45		3,275,000		3,365,145
Total Collateralized Mortgage Obligations (Cost $23,204,062)				21,746,932

See notes to financial statements.

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Security Description	Principal Amount		Value
Residential Mortgage Backed Securities (1.1%)
Ameriquest Mortgage Securities, Inc. , Series 2003-5, Class A6, 4.03%, 4/25/33, Callable 7/25/18 @ 100 (b)	$	114,926	$	114,926
Bear Stearns Alt-A Trust , Series 2003-3, Class 2A, 3.67%, 10/25/33, Callable 7/25/18 @ 100 (b) (d)		1,309,332		1,309,332
Countrywide Home Loans, Inc. , Series 2002-19, Class 1A1, 6.25%, 11/25/32, Callable 7/25/18 @ 100		153,447		153,447
Credit Suisse First Boston Mortgage Securities Corp. , Series 2002-HE16, Class M1, 3.41%, (LIBOR01M+132bps), 10/25/32, Callable 7/25/18 @ 100 (b)		1,121,839		1,138,812
GSR Mortgage Loan Trust , Series 2004-10F, Class 6A1, 5.00%, 9/25/34, Callable 7/25/18 @ 100		406,483		406,483
JPMorgan Mortgage Trust , Series 2016-4, Class A5, 3.50%, 10/25/46, Callable 5/25/35 @ 100 (a) (b) (d)		1,811,062		1,791,437
JPMorgan Mortgage Trust , Series 2004-S2, Class 1A3, 4.75%, 11/25/19, Callable 4/25/19 @ 100 (d)		118,375		120,155
MASTR Adjustable Rate Mortgage Trust , Series 04-13, Class 3A1, 3.91%, 11/21/34, Callable 10/21/18 @ 100 (b)		992,482		999,482
Prime Mortgage Trust , Series 2004-2, Class A3, 5.25%, 11/25/19, Callable 7/25/18 @ 100 (d)		30,257		30,257
Residential Funding Mortgage Securities I, Inc. , Series 2005-S3, Class A1, 4.75%, 3/25/20, Callable 7/25/18 @ 100 (d)		95,137		95,137
Structured Asset Securities Corp. , Series 2004-21XS, Class 2A6A, 5.24%, 12/25/34, Callable 7/25/18 @ 100 (b) (d)		3,059		3,114
Wells Fargo Mortgage Backed Securities Trust , Series 2005-2, Class 2A1, 4.75%, 4/25/20, Callable 7/25/18 @ 100 (d)		43,013		43,013
Wells Fargo Mortgage Backed Securities Trust , Series 2004-Y, Class 3A1, 3.74%, 11/25/34, Callable 7/25/18 @ 100 (b) (d)		1,373,435		1,373,435
Total Residential Mortgage Backed Securities (Cost $7,632,767)				7,579,030
Corporate Bonds (34.2%)
Consumer Discretionary (3.1%):
Best Buy Co., Inc., 5.50%, 3/15/21, Callable 12/15/20 @ 100		2,885,000		3,019,874
BorgWarner, Inc., 4.63%, 9/15/20 (d)		1,500,000		1,538,310
Darden Restaurants, Inc., 3.85%, 5/1/27, Callable 2/1/27 @ 100		1,450,000		1,397,583
Hasbro, Inc. 3.50%, 9/15/27, Callable 6/15/27 @ 100		775,000		718,379
6.35%, 3/15/40		3,655,000		4,011,764
Lear Corp., 3.80%, 9/15/27, Callable 6/15/27 @ 100		2,595,000		2,435,096
Magna International, Inc., 3.63%, 6/15/24, Callable 3/15/24 @ 100		4,305,000		4,290,492
NIKE, Inc., 3.88%, 11/1/45, Callable 5/1/45 @ 100		2,199,000		2,128,544
SES Global Americas Holdings GP, 5.30%, 3/25/44 (a)		2,475,000		2,147,137
				21,687,179
Consumer Staples (2.3%):
Altria Group, Inc., 4.25%, 8/9/42		775,000		722,928
Estee Lauder Cos., Inc., 4.15%, 3/15/47, Callable 9/15/46 @ 100		1,000,000		1,023,710
Kerry Group Finance Services, 3.20%, 4/9/23, Callable 1/9/23 @ 100 (a)		5,760,000		5,624,179

See notes to financial statements.

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Security Description	Principal Amount		Value
Mead Johnson Nutrition Co. 3.00%, 11/15/20	$	3,000,000	$	2,985,329
4.60%, 6/1/44, Callable 12/1/43 @ 100 (c) (d)		2,091,000		2,174,515
Reynolds American, Inc., 5.70%, 8/15/35, Callable 2/15/35 @ 100 (c)		1,835,000		1,974,111
Tyson Foods, Inc., 3.55%, 6/2/27, Callable 3/2/27 @ 100		1,428,000		1,350,103
				15,854,875
Energy (2.1%):
Dolphin Energy Ltd., 5.89%, 6/15/19 (a)		328,000		332,694
Enable Midstream Partners LP, 4.40%, 3/15/27, Callable 12/15/26 @ 100		2,345,000		2,225,616
EQT Midstream Partners LP, 5.50%, 7/15/28, Callable 4/15/28 @ 100		2,400,000		2,401,080
Exxon Mobil Corp., 4.11%, 3/1/46, Callable 9/1/45 @ 100 (c)		2,032,000		2,061,464
Marathon Petroleum Corp. 6.50%, 3/1/41, Callable 9/1/40 @ 100		1,285,000		1,498,747
5.85%, 12/15/45, Callable 6/15/45 @ 100		850,000		908,421
Statoil ASA, 3.95%, 5/15/43 (c)		930,000		886,495
Valero Energy Corp. 3.40%, 9/15/26, Callable 6/15/26 @ 100		1,840,000		1,747,135
6.63%, 6/15/37		2,520,000		3,027,326
				15,088,978
Financials (10.9%):
Aflac, Inc., 2.88%, 10/15/26, Callable 7/15/26 @ 100		2,450,000		2,298,051
Alleghany Corp., 4.90%, 9/15/44, Callable 3/15/44 @ 100		1,648,000		1,675,357
Bank of America Corp. 2.33%, (LIBOR03M+63bps), 10/1/21, Callable 10/1/20 @ 100 (b)		1,875,000		1,831,219
2.50%, 10/21/22, Callable 10/21/21 @ 100, MTN		3,500,000		3,352,510
BB&T Corp., 2.75%, 4/1/22, MTN, Callable 3/1/22 @ 100 (c)		3,550,000		3,470,658
Capital One Financial Corp., 4.20%, 10/29/25, Callable 9/29/25 @ 100		3,845,000		3,737,148
Cincinnati Financial Corp., 6.13%, 11/1/34		2,170,000		2,585,121
Citigroup, Inc. 4.50%, 1/14/22 (d)		2,980,000		3,069,221
3.88%, (US0003M+117bps), 1/24/39, Callable 1/24/38 @ 100 (b)		1,760,000		1,603,184
HSBC Holdings PLC, 5.10%, 4/5/21 (c) (d)		5,000,000		5,223,950
JPMorgan Chase & Co. 3.38%, 5/1/23 (c) (d)		6,700,000		6,542,281
5.60%, 7/15/41		1,710,000		1,937,858
5.40%, 1/6/42		1,059,000		1,174,855
KeyBank NA, 2.25%, 3/16/20		6,523,000		6,432,003
KeyCorp, 2.90%, 9/15/20, MTN		2,485,000		2,464,623
Morgan Stanley 3.75%, 2/25/23 (d)		3,000,000		3,003,990
3.13%, 7/27/26, MTN		2,750,000		2,559,480
SVB Financial Group 5.38%, 9/15/20		1,568,000		1,633,370
3.50%, 1/29/25		3,496,000		3,386,330
Synovus Financial Corp., 3.13%, 11/1/22, Callable 10/1/22 @ 100		2,075,000		1,986,833
The Goldman Sachs Group, Inc. 2.35%, 11/15/21, Callable 11/15/20 @ 100		4,540,000		4,370,658
5.75%, 1/24/22 (d)		2,750,000		2,942,693
UBS Group Funding Switzerland AG, 2.95%, 9/24/20 (a) (c) (d)		3,750,000		3,712,350

See notes to financial statements.

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  (Unaudited)

Security Description	Principal Amount		Value
Unum Group, 3.00%, 5/15/21, Callable 4/15/21 @ 100 (d)	$	1,910,000	$	1,879,249
Wells Fargo & Co., 4.90%, 11/17/45 (d)		1,850,000		1,839,270
				74,712,262
Health Care (3.8%):
Agilent Technologies, Inc., 3.05%, 9/22/26, Callable 6/22/26 @ 100		2,755,000		2,514,516
Amgen, Inc., 4.40%, 5/1/45, Callable 11/1/44 @ 100		1,825,000		1,744,481
Celgene Corp. 2.75%, 2/15/23, Callable 1/15/23 @ 100		1,005,000		960,237
3.90%, 2/20/28, Callable 11/20/27 @ 100		2,125,000		2,018,198
DENTSPLY Sirona, Inc., 4.13%, 8/15/21, Callable 5/15/21 @ 100		2,641,000		2,665,403
Edwards Lifesciences Corp., 4.30%, 6/15/28, Callable 3/15/28 @ 100		2,095,000		2,090,663
Express Scripts Holding Co. 2.25%, 6/15/19 (d)		3,102,000		3,078,736
4.80%, 7/15/46, Callable 1/15/46 @ 100		1,375,000		1,309,426
Gilead Sciences, Inc. 4.40%, 12/1/21, Callable 9/1/21 @ 100 (d)		6,150,000		6,356,517
4.80%, 4/1/44, Callable 10/1/43 @ 100		1,285,000		1,334,267
Humana, Inc., 3.95%, 3/15/27, Callable 12/15/26 @ 100		2,080,000		2,045,950
				26,118,394
Industrials (2.5%):
AerCap Ireland Capital Ltd., 3.75%, 5/15/19 (d)		2,900,000		2,916,298
Canadian National Railway Co., 3.20%, 8/2/46, Callable 2/2/46 @ 100		825,000		713,204
Carlisle Cos., Inc., 3.50%, 12/1/24, Callable 10/1/24 @ 100		1,810,000		1,736,351
Hexcel Corp., 3.95%, 2/15/27, Callable 11/15/26 @ 100		1,085,000		1,061,456
IDEX Corp., 4.20%, 12/15/21, Callable 9/15/21 @ 100		3,165,000		3,194,245
Kansas City Southern, 4.95%, 8/15/45, Callable 2/15/45 @ 100		1,440,000		1,441,411
Snap-on, Inc., 4.10%, 3/1/48, Callable 9/1/47 @ 100		1,100,000		1,103,278
Southwest Airlines Co., 2.75%, 11/16/22, Callable 10/16/22 @ 100		2,250,000		2,184,458
Valmont Industries, Inc., 5.00%, 10/1/44, Callable 4/1/44 @ 100 (d)		2,603,000		2,469,961
				16,820,662
Information Technology (3.3%):
Activision Blizzard, Inc. 2.30%, 9/15/21, Callable 8/15/21 @ 100 (c)		2,615,000		2,527,345
4.50%, 6/15/47, Callable 12/15/46 @ 100		1,080,000		1,042,168
Apple, Inc., 4.65%, 2/23/46, Callable 8/23/45 @ 100		1,569,000		1,688,385
Applied Materials, Inc., 5.10%, 10/1/35, Callable 4/1/35 @ 100		2,021,000		2,247,756
Cadence Design Systems, Inc., 4.38%, 10/15/24, Callable 7/15/24 @ 100		813,000		823,349
Electronic Arts, Inc., 3.70%, 3/1/21, Callable 2/1/21 @ 100 (d)		5,767,000		5,820,171
Juniper Networks, Inc., 5.95%, 3/15/41		1,345,000		1,376,083
NVIDIA Corp., 2.20%, 9/16/21, Callable 8/16/21 @ 100		1,230,000		1,194,244
VMware, Inc. 2.30%, 8/21/20 (c) (d)		4,280,000		4,185,198
2.95%, 8/21/22, Callable 7/21/22 @ 100 (c)		2,549,000		2,444,822
				23,349,521
Materials (1.9%):
Fresnillo PLC, 5.50%, 11/13/23 (a)		2,800,000		2,895,116
LYB International Finance BV, 4.00%, 7/15/23		1,737,000		1,740,596
Lyondellbasell Industries NV, 5.00%, 4/15/19, Callable 1/15/19 @ 100 (d)		1,800,000		1,817,982

See notes to financial statements.

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Security Description	Principal Amount		Value
Newcrest Finance Pty Ltd., 5.75%, 11/15/41 (a)	$	1,720,000	$	1,797,073
Rio Tinto Finance USA Ltd. 3.75%, 6/15/25, Callable 3/15/25 @ 100 (c)		1,415,000		1,423,080
5.20%, 11/2/40		723,000		817,127
Vale Overseas Ltd., 6.25%, 8/10/26		2,340,000		2,539,040
				13,030,014
Real Estate (0.7%):
Lexington Realty Trust, 4.25%, 6/15/23, Callable 3/15/23 @ 100		1,557,000		1,531,730
National Retail Properties, Inc., 3.60%, 12/15/26, Callable 9/15/26 @ 100		1,280,000		1,212,429
Welltower, Inc., 4.50%, 1/15/24, Callable 10/15/23 @ 100 (c)		1,861,000		1,893,884
				4,638,043
Telecommunication Services (1.8%):
AT&T, Inc. 2.30%, 3/11/19 (d)		9,000,000		8,965,530
5.15%, 11/15/46, Callable 5/15/46 @ 100 (a) (d)		3,833,000		3,617,355
				12,582,885
Utilities (1.8%):
Arizona Public Service Co., 2.95%, 9/15/27, Callable 6/15/27 @ 100		1,800,000		1,691,676
Consolidated Edison, Inc., 6.30%, 8/15/37		1,870,000		2,358,463
Empresa Nacional de Electricidad SA, 4.25%, 4/15/24, Callable 1/15/24 @ 100 (c)		3,527,000		3,504,357
Iberdrola International BV 6.75%, 9/15/33		373,000		435,709
6.75%, 7/15/36		783,000		990,714
Nevada Power Co., 6.65%, 4/1/36 (d)		600,000		772,482
Oklahoma G&E Co., 5.25%, 5/15/41, Callable 11/15/40 @ 100		1,546,000		1,759,147
Public Service Enterprise Group, Inc., 4.00%, 6/1/44, Callable 12/1/43 @ 100		1,289,000		1,255,009
				12,767,557
Total Corporate Bonds (Cost $243,689,547)				236,650,370
Government National Mortgage Association (0.0%) (e)
Multi-family (0.0%):
Collateralized Mortgage Obligations (0.0%):
Government National Mortgage Association 6.00%, 12/15/33		36,106		39,811
Total Government National Mortgage Association (Cost $37,050)				39,811
U.S. Government Mortgage Backed Agencies (35.7%)
Federal Home Loan Mortgage Corp. 5.00%, 6/15/23 – 7/1/39 (d)		2,155,769		2,299,016
Series 4139, Class DA, 1.25%, 12/15/27		8,885,705		8,388,542
7.00%, 9/1/38 (d)		87,374		99,177
Series 4290, Class CA, 3.50%, 12/15/38 – 11/1/47		28,168,211		28,101,728
Series 3713, Class PA, 2.00%, 2/15/40 – 3/15/40 (d)		10,849,545		10,557,430
4.00%, 1/1/41 (d)		2,064,820		2,122,695

See notes to financial statements.

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Security Description	Shares or Principal Amount		Value
4.50%, 1/1/41 – 5/1/47 (d)	$	18,668,652	$	19,591,934
Series 4049, Class AB, 2.75%, 12/15/41		1,732,674		1,711,994
Series 4494, Class JA, 3.75%, 5/15/42		6,680,375		6,779,068
				79,651,584
Federal Home Loan Mortgage Corp., Structured Agency Credit Risk Debt Notes 4.29%, (LIBOR01M+220bps), 2/25/24 (d)		3,351,045		3,449,137
Federal National Mortgage Association 6.00%, 8/1/21 – 2/1/37 (d)		3,058,241		3,327,287
5.00%, 4/1/23 – 12/1/39		1,576,148		1,684,741
7.50%, 12/1/29		50,955		57,500
8.00%, 1/1/30 – 9/1/30		26,952		30,716
7.00%, 2/1/32 – 6/1/32		43,630		49,238
3.41%, (LIBOR12M+166bps), 12/1/36 (d)		140,495		146,719
5.50%, 1/1/38 – 2/1/39 (d)		1,031,003		1,126,322
4.50%, 12/1/38 – 6/1/40 (d)		10,875,430		11,306,672
Series 2013-33, Class UD, 2.50%, 4/25/39 – 12/25/47		10,340,527		10,003,008
Series 2013-137, Class A, 3.50%, 3/25/40 – 11/1/47		45,704,436		45,578,028
4.00%, 9/1/40 – 5/1/48		32,875,178		33,709,919
Series 2011-101, Class LA, 3.00%, 10/25/40 – 2/1/47		51,223,193		49,787,591
Series 2013-81, Class KA, 2.75%, 9/25/42		6,696,262		6,571,876
3.44%, (LIBOR12M+169bps), 8/1/46 (d)		153,658		161,989
				163,541,606
Government National Mortgage Association 6.00%, 10/15/32		107,672		117,611
Total U.S. Government Mortgage Backed Agencies (Cost $254,090,722)				246,759,938
U.S. Treasury Obligations (16.7%)
U.S. Treasury Bills, 1.66%, 8/2/18 (d) (f)		7,641,000		7,629,372
U.S. Treasury Bonds 2.88%, 5/15/43 (d)		8,790,000		8,631,387
3.63%, 2/15/44 (d)		11,556,000		12,885,075
U.S. Treasury Notes 1.75%, 5/31/22		28,599,000		27,601,443
2.75%, 4/30/23		52,069,000		52,122,021
2.00%, 8/15/25 (d)		6,633,000		6,284,762
Total U.S. Treasury Obligations (Cost $114,474,711)				115,154,060
Collateral for Securities Loaned (0.8%)
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (g)		751,531		751,531
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (g)		683,235		683,235
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (g)		1,545,079		1,545,079
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (g)		341,577		341,577
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (g)		1,776,152		1,776,152

See notes to financial statements.

8

Victory Variable Insurance Funds
Victory INCORE Investment Quality Bond VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (g)	$	614,839	$	614,839
Total Collateral for Securities Loaned (Cost $5,712,413)				5,712,413
Total Investments (Cost $699,318,070) — 98.9%				683,837,919
Other assets in excess of liabilities — 1.1%				7,479,863
NET ASSETS — 100.0%			$	691,317,782

(a)  Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2018, the fair value of these securities was $52,675,384 and amounted to 7.6% of net assets.

(b)  Variable or Floating-Rate Security. Rate disclosed is as of June 30, 2018.

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

(d)  All or a portion of this security has been segregated as collateral for derivative instruments.

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

(f)  Rate represents the effective yield at June 30, 2018.

(g)  Rate disclosed is the daily yield on June 30, 2018.

bps — Basis points

LIBOR — London InterBank Offered Rate

LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LIBOR03M — 3 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LIBOR12M — 12 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LLC — Limited Liability Company

LP — Limited Partnership

MTN — Medium Term Note

PLC — Public Limited Company

US0003M — 3 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

Futures Contracts Purchased

	Number of Contracts		Expiration Date	Notional Amount		Value		Unrealized Appreciation (Depreciation)
10-Year U.S. Treasury Note Future		335	9/19/18	$	40,051,959	$	40,262,813	$	210,854
5-Year U.S. Treasury Note Future		259	9/28/18		29,387,248		29,426,851		39,603
								$	250,457

See notes to financial statements.

9

Victory Variable Insurance Funds
Victory INCORE Investment Quality Bond VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Futures Contracts Sold

	Number of Contracts		Expiration Date	Notional Amount		Value		Unrealized Appreciation (Depreciation)
2-Year U.S. Treasury Note Future		96	9/28/18	$	20,342,672	$	20,335,500	$	7,172
	Total unrealized appreciation							$	257,629
	Total unrealized depreciation								—
	Total net unrealized appreciation							$	257,629

Centrally Cleared

Credit Default Swap Agreements — Sell Protection (a)

Underlying Instrument	Fixed Deal Received Rate			Maturity Date	Payment Frequency	Implied Credit Spread at June 30, 2018 (b)			Notional Amount (c)		Value		Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
CDX North America High Yield Index; Series 30		5.00	%	6/20/23	Daily		3.63	%	$	42,200,000	$	2,492,732	$	2,444,435	$	48,297

(a)  When a credit event occurs as defined under the terms of the swap agreement, the Fund as a seller of credit protection will either (i) pay to the buyer of protection an amount equal to the par value of the defaulted reference entity and take delivery of the reference entity or (ii) pay a net amount equal to the par value of the defaulted reference entity less its recovery value.

(b)  Implied credit spread, represented in absolute terms, utilized in determining the value of the credit default swap agreements as of period end will serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a referenced entity reflects the cost of buying/selling protection and may include payments required to be made to enter into the agreement. Generally, wider credit spreads represent a perceived deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap agreement.

(c)  The notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection if a credit event occurs, as defined under the terms of the swap agreement, for each security included in the CDX North America High Yield Index.

See notes to financial statements.

10

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory INCORE Investment Quality Bond VIP Series
ASSETS:
Investments, at value (Cost $699,318,070)	$	683,837,919	(a)
Cash and cash equivalents		5,271,406
Deposits with broker for futures contracts		1,520,922
Deposits with broker for swap agreements		5,231,393
Interest receivable		3,652,622
Receivable for capital shares issued		998
Variation margin receivable on open futures contracts		3,000
Variation margin receivable on open swap agreements		27,666
Receivable from Adviser		25,212
Prepaid expenses		19,472
Total Assets		699,590,610
LIABILITIES:
Securities lending collateral		5,712,413
Payable for investments purchased		2,009,200
Payable for capital shares redeemed		151,712
Variation margin payable on open futures contracts		5,211
Accrued expenses and other payables:
Investment advisory fees		285,123
Administration fees		34,787
Custodian fees		5,243
Transfer agent fees		218
Chief Compliance Officer fees		863
Trustees' fees		36
Other accrued expenses		68,021
Total Liabilities		8,272,828
NET ASSETS:
Capital		697,724,439
Accumulated net investment income (loss)		12,919,233
Accumulated net realized gains (losses) from investments		(4,151,665	)
Net unrealized appreciation (depreciation) on investments		(15,174,225	)
Net Assets	$	691,317,782
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		58,076,394
Net asset value:	$	11.90

(a)  Includes $5,534,127 of securities on loan.

See notes to financial statements.

11

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory INCORE Investment Quality Bond VIP Series
Investment Income:
Interest income	$	10,891,537
Securities lending income		12,479
Total Income		10,904,016
Expenses:
Investment advisory fees		1,766,058
Administration fees		207,275
Custodian fees		16,195
Transfer agent fees		939
Trustees' fees		28,821
Chief Compliance Officer fees		3,112
Legal and audit fees		41,647
Other expenses		62,281
Total Expenses		2,126,328
Expenses waived/reimbursed by Adviser		(148,889	)
Net Expenses		1,977,439
Net Investment Income (Loss)		8,926,577
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions		(3,348,508	)
Net realized gains (losses) from futures transactions		(809,290	)
Net realized gains (losses) from swap transactions		1,349,488
Net change in unrealized appreciation/depreciation on investments		(17,411,308	)
Net change in unrealized appreciation/depreciation on futures transactions		456,839
Net change in unrealized appreciation/depreciation on swap transactions		(159,334	)
Net realized/unrealized gains (losses) on investments		(19,922,113	)
Change in net assets resulting from operations	$	(10,995,536	)

See notes to financial statements.

12

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory INCORE Investment Quality Bond VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	8,926,577		$	16,911,088
Net realized gains (losses) from investment transactions		(2,808,310	)		4,641,216
Net change in unrealized appreciation/depreciation on investments		(17,113,803	)		8,760,833
Change in net assets resulting from operations		(10,995,536	)		30,313,137
Distributions to Shareholders:
From net investment income		—			(17,209,084	)
Change in net assets resulting from distributions to shareholders		—			(17,209,084	)
Change in net assets resulting from capital transactions		(24,408,156	)		(2,674,726	)
Change in net assets		(35,403,692	)		10,429,327
Net Assets:
Beginning of period		726,721,474			716,292,147
End of period	$	691,317,782		$	726,721,474
Accumulated net investment income (loss)	$	12,919,233		$	3,992,656
Capital Transactions:
Proceeds from shares issued	$	30,879,211		$	84,023,731
Distributions reinvested		—			17,209,084
Cost of shares redeemed		(55,287,367	)		(103,907,541	)
Change in net assets resulting from capital transactions	$	(24,408,156	)	$	(2,674,726	)
Share Transactions:
Issued		2,581,559			6,961,615
Reinvested		—			1,429,326
Redeemed		(4,652,942	)		(8,518,824	)
Change in Shares		(2,071,383	)		(127,883	)

See notes to financial statements.

13

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory INCORE Investment Quality Bond VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	12.08		$	11.88		$	11.98		$	12.38		$	12.18		$	12.78
Investment Activities:
Net investment income (loss)		0.15	(a)		0.28	(a)		0.27	(a)		0.31	(a)		0.38			0.34
Net realized and unrealized gains (losses) on investments		(0.33	)		0.21			0.15			(0.27	)		0.30			(0.54	)
Total from Investment Activities		(0.18	)		0.49			0.42			0.04			0.68			(0.20	)
Distributions to Shareholders:
Net investment income		—			(0.29	)		(0.30	)		(0.32	)		(0.38	)		(0.34	)
Net realized gains from investments		—			—			(0.22	)		(0.12	)		(0.10	)		(0.06	)
Total Distributions to Shareholders		—			(0.29	)		(0.52	)		(0.44	)		(0.48	)		(0.40	)
Capital Contributions from Prior Custodian, Net (See Note 8)		—			—			—	(b)		—			—			—
Net Asset Value, End of Period	$	11.90		$	12.08		$	11.88		$	11.98		$	12.38		$	12.18
Total Return (c) (d)		(1.49	)%		4.15	%		3.53	%(e)		0.33	%		5.55	%		(1.63	)%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	691,318		$	726,721		$	716,292		$	755,696		$	802,377		$	794,727
Ratio of net expenses to average net assets (f)		0.56	%		0.56	%		0.55	%		0.56	%		0.56	%		0.56	%
Ratio of net investment income (loss) to average net assets (f)		2.53	%		2.28	%		2.17	%		2.47	%		2.93	%		2.72	%
Ratio of gross expenses to average net assets (f) (g)		0.60	%		0.61	%		0.55	%		0.56	%		0.56	%		0.56	%
Portfolio turnover (d)		39	%		83	%		142	%		41	%		47	%		199	%

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

(b)  Amount is less than $0.005 per share.

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

(d)  Not annualized for periods less than one year.

(e)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was less than 0.01% for the period shown. (See Note 8).

(f)  Annualized for periods less than one year.

(g)  During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratios would have been as indicated.

See notes to financial statements.

14

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory INCORE Investment Quality Bond VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to provide a high level of current income and capital appreciation without undue risk to principal.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

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

15

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Swap agreements, are valued at the mean between the current bid and ask prices. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	LEVEL 1 — Quoted Prices				LEVEL 2 — Other Significant Observable Inputs				Total
	Investments in Securities		Other Financial Investments^		Investments in Securities		Other Financial Investments^		Investments in Securities		Other Financial Investments^
Asset Backed Securities	$	—	$	—	$	50,195,365	$	—	$	50,195,365	$	—
Collateralized Mortgage Obligations		—		—		21,746,932		—		21,746,932		—
Residential Mortgage Backed Securities		—		—		7,579,030		—		7,579,030		—
Corporate Bonds		—		—		236,650,370		—		236,650,370		—
Government National Mortgage Association		—		—		39,811		—		39,811		—
U.S. Government Mortgage Backed Agencies		—		—		246,759,938		—		246,759,938		—
U.S. Treasury Obligations		—		—		115,154,060		—		115,154,060		—
Collateral for Securities Loaned		5,712,413		—		—		—		5,712,413		—
Futures Contracts		—		257,629		—		—		—		257,629
Credit Default Swap		—		—		—		48,297		—		48,297
Total	$	5,712,413	$	257,629	$	678,125,506	$	48,297	$	683,837,919	$	305,926

^  Other Financial instruments include any derivative instruments not reflected in the Schedule of Portfolio Investments as investment securities, such as futures contracts and swap agreements. These instruments are generally recorded in the financial statements at the unrealized gain or loss on the investment.

16

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

There were no transfers among any levels during the six months ended June 30, 2018.

Securities Purchased on a When-Issued Basis:

The Fund may purchase securities on a when-issued basis. When-issued securities are securities purchased for delivery beyond normal settlement periods at a stated price and/or yield, thereby involving the risk that the price and/or yield obtained may be more or less than those available in the market when delivery takes place. At the time the Fund makes the commitment to purchase a security on a when-issued basis, the Fund records the transaction and reflects the value of the security in determining net asset value. No interest accrues to the Fund until the transaction settles and payment takes place. Normally, the settlement date occurs within one month of the purchase. A segregated account is established and the Fund maintains cash and/or marketable securities at least equal in value to commitments for when-issued securities. If the Fund owns when-issued securities, these values are included in "Payable for investments purchased" on the accompanying Statement of Assets and Liabilities. As of June 30, 2018, the Fund had outstanding when-issued purchase commitments covered by the segregated assets as identified in the Schedules of Portfolio Investments

Loans:

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

The Fund may purchase second lien loans (secured loans with a claim on collateral subordinate to a senior lender's claim on such collateral), fixed rate loans, unsecured loans, and other debt obligations.

Transactions in loans often settle on a delayed basis, and the Fund may not receive the proceeds from the sale of a loan or pay for a loan purchase for a substantial period of time after entering into the transactions.

Below Investment Grade Securities:

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

Investment Companies:

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

17

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Derivative Instruments:

Futures Contracts:

The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Fund is presented on the Statement of Assets and Liabilities under Deposit with broker for futures contracts.

Credit Derivatives:

The Fund may enter into credit derivatives, including centrally-cleared credit default swaps on individual obligations or credit indices. The Fund may use these investments (i) as alternatives to direct long or short investment in a particular security or securities, (ii) to adjust the Fund's asset allocation or risk exposure, or (iii) for hedging purposes. The use by the Fund of credit default swaps may have the effect of creating a short position in a security. Credit derivatives can create investment leverage and may create additional investment risks that may subject the Fund to greater volatility than investments in more traditional securities, as described in the Fund's Statement of Additional Information.

Credit default swap ("CDS") agreements on credit indices involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of a specific sector of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the CDS.

The counterparty risk for cleared swap agreements is generally lower than for uncleared over-the-counter swap agreements because generally a clearing organization becomes substituted for each counterparty to a cleared swap agreement and, in effect, guarantees each party's performance under the contract as each party to a trade looks only to the clearing organization for performance of financial obligations. However, there can be no assurance that the clearing organization, or its members, will satisfy its obligations to the Fund.

18

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

The Fund may enter into CDS agreements either as a buyer or seller. The Fund may buy protection under a CDS to attempt to mitigate the risk of default or credit quality deterioration in one or more individual holdings or in a segment of the fixed income securities market. The Fund may sell protection under a CDS in an attempt to gain exposure to an underlying issuer's credit quality characteristics without investing directly in that issuer.

For swaps entered with an individual counterparty, the Fund bears the risk of loss of the uncollateralized amount expected to be received under a CDS agreement in the event of the default or bankruptcy of the counterparty. CDS agreements are generally valued at a price at which the counterparty to such agreement would terminate the agreement. The Fund may also enter into cleared swaps.

Upon entering into a cleared CDS, the Fund may be required to deposit with the broker an amount of cash or cash equivalents in the range of approximately 3% to 6% of the notional amount for CDS on high yield debt issuers (this amount is subject to change by the clearing organization that clears the trade). This amount, known as "initial margin," is in the nature of a performance bond or good faith deposit on the CDS and is returned to a Fund upon termination of the CDS, assuming all contractual obligations have been satisfied. Subsequent payments, known as "variation margin," to and from the broker will be made daily as the price of the CDS fluctuates, making the long and short positions in the CDS contract more or less valuable, a process known as "marking-to-market." The premium (discount) payments are built into the daily price of the CDS and thus are amortized through the variation margin. The variation margin payment also includes the daily portion of the periodic payment stream.

The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a CDS agreement equals the notional amount of the agreement. Notional amounts of each individual CDS agreement outstanding as of period end for which the Fund is the seller of protection are disclosed on the Schedule of Portfolio Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, periodic interest payments, or net amounts received from the settlement of buy protection CDS agreements entered into by the Fund for the same referenced entity or entities.

As of June 30, 2018, the Fund entered into centrally cleared CDS agreements primarily for the strategy of asset allocation and risk exposure management.

Summary of Derivative Instruments:

The following table summarizes the fair values of derivative instruments on the Statement of Assets and Liabilities, categorized by risk exposure, as of June 30, 2018:

	Assets
	Variation Margin Receivable on Open Futures Contracts*		Variation Margin Receivable on Open Swap Agreements*
Credit Risk Exposure	$	—	$	48,297
Interest Rate Risk Exposure		257,629		—

*  Includes cumulative appreciation/depreciation of futures contracts and centrally cleared swap agreements as reported in the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilities.

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June 30, 2018

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The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the six months ended June 30, 2018.

	Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations					Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations
	Net Realized Gains (Losses) from Futures Transactions			Net Realized Gains (Losses) from Swap Transactions		Net Change in Unrealized Appreciation/ Depreciation on Futures Transactions		Net Change in Unrealized Appreciation/ Depreciation on Swap Transactions
Credit Risk Exposure	$	—		$	1,349,488	$	—	$	(159,334	)
Interest Rate Risk Exposure		(809,290	)		—		456,839		—

All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The notional amount of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

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

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted on the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

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Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund. The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	5,534,127	$	5,712,413	$	178,286

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually. The amounts of dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature (e.g., reclass of market discounts), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.

Federal Income Taxes:

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

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases (excluding U.S. Government Securities)		Sales (excluding U.S. Government Securities)		Purchases of U.S. Government Securities		Sales of U.S. Government Securities
$	36,419,682	$	95,923,994	$	231,282,350	$	175,339,728

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Victory Variable Insurance Funds Notes to Financial Statements — continued
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4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC,.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.50% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 0.56%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2020		Expires 12/31/2021
$	362,552	$	148,889

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date of July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

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June 30, 2018

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Interfund Lending:

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

The Fund did not utilize or participate in the Facility during the six months ended June 30, 2018.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

Year Ended December 31, 2017
Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	17,209,084	$	—	$	17,209,084

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Unrealized Appreciation (Depreciation)*		Total Accumulated Earnings (Deficit)
$	4,284,712	$	4,912	$	4,289,624	$	299,255	$	4,588,879

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

During the most recent tax year ended December 31, 2017, the Fund did not utilize any capital loss carryforwards.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	700,634,561	$	2,474,603	$	(18,965,319	)	$	(16,490,716	)

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
New York Life Insurance and Annuity Corporation		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

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Victory Variable Insurance Funds Supplemental Information
June 30, 2018

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Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016- December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

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Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011- 2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013)	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

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Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

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Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	985.10	$	2.76		0.56	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,022.02	$	2.81		0.56	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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Portfolio Holdings:

(As a Percentage of Total Investments)

(a) Amount represents less than 0.05% of
investments.

31

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-IIQBVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory High Yield VIP Series

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	7
Statement of Operations	8
Statements of Changes in Net Assets	9
Financial Highlights	10
Notes to Financial Statements	11
Supplemental Information
Trustee and Officer Information	20
Proxy Voting and Form N-Q Information	23
Expense Examples	23
Portfolio Holdings	25
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

1

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2

Victory Variable Insurance Funds
Victory High Yield VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Shares or Principal Amount		Value
Common Stocks (2.8%)
Consumer Discretionary (2.5%):
Wynn Resorts Ltd.		1,000	$	167,340
AMC Entertainment Holdings, Inc., Class A		20,000		318,000
AMC Networks, Inc., Class A (a)		3,000		186,600
TEGNA, Inc. (b)		17,000		184,450
				856,390
Energy (0.3%):
Sanchez Energy Corp. (a) (b)		26,000		117,520
Total Common Stocks (Cost $1,024,581)				973,910
Senior Secured Loans (28.1%)
Ai Ladder Luxembourg Subco Sarl, 1st Lien Term Loan B , 7.02% (LIBOR01M+450bps), 5/4/25 (c) (d)	$	400,000		397,832
Alphabet Holding Co., Inc., 2nd Lien Term Loan , 9.84% (LIBOR01M+775bps), 8/15/25, Callable 8/3/18 @ 102 (c)		700,000		567,294
Avaya, Inc., 1st Lien Term Loan B , 6.32% (LIBOR01M+425bps), 12/15/24, Callable 8/3/18 @ 101 (c)		348,250		348,470
Bass Pro Group LLC, Term Loan B , 7.09% (LIBOR01M+500bps), 12/16/23, Callable 8/3/18 @ 100 (c)		744,375		744,845
BJ's Wholesale Club, Inc. , 9.53% (LIBOR01M+750bps), 1/27/25, Callable 8/3/18 @ 101 (c)		472,983		477,121
Caesars Resort Collection LLC, 1st Lien Term Loan B , 4.84% (LIBOR01M+275bps), 10/2/24, Callable 8/3/18 @ 100 (c)		497,500		495,550
Chesapeake Energy Corp. , 9.59% (LIBOR01M+750bps), 8/23/21, Callable 8/23/18 @ 104.25 (c)		600,000		627,126
Crown Finance US, Inc., 1st Lien Term Loan B , 4.59% (LIBOR01M+250bps), 2/7/25, Callable 8/3/18 @ 101 (c)		349,125		346,252
Dayco Products LLC , 6.55% (LIBOR03M+425bps), 5/19/24, Callable 8/3/18 @ 101 (c)		495,000		493,763
Hertz Corp., Term Loan B1 , 4.85% (LIBOR01M+275bps), 6/30/23, Callable 8/3/18 @ 100 (c)		494,911		490,971
Navistar, Inc., 1st Lien Term Loan B , 5.53% (LIBOR01M+350bps), 11/2/24, Callable 8/3/18 @ 100 (c)		498,750		498,441
Packaging Coordinators Midco, Inc., 2nd Lien Term Loan , 11.09% (LIBOR03M+875bps), 7/1/24, Callable 8/3/18 @ 100 (c)		400,000		398,000
PetSmart, Inc. , 5.01% (LIBOR01M+300bps), 3/10/22, Callable 8/3/18 @ 100 (c)		494,898		408,103
Prospect Medical Holdings, Inc., 1st Lien Term Loan B , 7.50% (LIBOR01M+550bps), 2/16/24, Callable 8/3/18 @ 101 (c)		349,125		348,250
Radiate Holdco LLC , 5.09% (LIBOR01M+300bps), 2/1/24, Callable 7/26/18 @ 100 (c)		497,481		489,920
Reynolds Group Holdings, Inc., 1st Lien Term Loan B , 4.84% (LIBOR01M+275bps), 2/5/23, Callable 8/3/18 @ 100 (c)		658,300		656,373
SIWF Holdings, Inc. , 10.57% (LIBOR01M+850bps), 5/26/26 (c)		500,000		480,000
Sprint Communications, Inc., 1st Lien Term Loan B , 4.63% (LIBOR01M+250bps), 2/2/24, Callable 8/3/18 @ 100 (c)		498,737		496,027
Stars Group Holdings BV, 1st Lien Term Loan B 5.83% (LIBOR02M+350 bps), 7/29/25 (c) (d)		500,000		499,999

See notes to financial statements.

3

Victory Variable Insurance Funds
Victory High Yield VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Utz Quality Foods LLC, 2nd Lien Term Loan , 9.34% (LIBOR01M+725bps), 11/21/25, Callable 8/3/18 @ 102 (c)	$	300,000	$	301,500
Windstream Services LLC, 1st Lien Term Loan , 5.34% (LIBOR01M+325bps), 2/8/24, Callable 8/3/18 @ 100 (c)		247,463		217,072
Total Senior Secured Loans (Cost $9,870,800)				9,782,909
Corporate Bonds (67.1%)
Consumer Discretionary (15.4%):
AMC Entertainment Holdings, Inc., 5.75%, 6/15/25, Callable 6/15/20 @ 102.88 (e)		500,000		490,270
AMC Networks, Inc., 4.75%, 8/1/25, Callable 8/1/21 @ 102.38		400,000		384,988
American Axle & Manufacturing, Inc., 6.63%, 10/15/22, Callable 8/3/18 @ 103.31		165,000		169,440
AV Homes, Inc., 6.63%, 5/15/22, Callable 5/15/19 @ 103.31		175,000		180,509
Beazer Homes USA, Inc., 5.88%, 10/15/27, Callable 10/15/22 @ 102.94		400,000		348,404
Boyd Gaming Corp., 6.38%, 4/1/26, Callable 4/1/21 @ 103.19		392,000		396,865
Cablevision Systems Corp., 5.88%, 9/15/22 (b)		500,000		495,855
Cequel Communications Holdings I LLC/Cequel Capital Corp., 5.13%, 12/15/21, Callable 8/3/18 @ 101.28 (f)		400,000		398,476
Downstream Development Authority of the Quapaw Tribe of Oklahoma, 10.50%, 2/15/23, Callable 2/15/20 @ 105.25 (f)		500,000		507,685
Golden Nugget, Inc., 8.75%, 10/1/25, Callable 10/1/20 @ 104.38 (f)		500,000		514,075
Stars Group Holdings BV/Stars Group US Co-Borrower LLC, 7.00%, 7/15/26, Callable 7/15/21 @ 103.5 (d) (f)		250,000		252,605
Titan Acquisition Ltd. / Titan Co-Borrower LLC, 7.75%, 4/15/26, Callable 4/15/21 @ 103.88 (e) (f)		500,000		466,620
VOC Escrow Ltd., 5.00%, 2/15/28, Callable 2/15/23 @ 102.5 (f)		350,000		331,723
Yum! Brands, Inc., 5.35%, 11/1/43, Callable 5/1/43 @ 100		550,000		484,341
				5,421,856
Consumer Staples (7.5%):
Albertsons Cos. LLC, 5.75%, 3/15/25, Callable 9/15/19 @ 104.31		500,000		442,500
Apex Tool Group LLC /BC Mountain Finance, Inc., 9.00%, 2/15/23, Callable 2/15/19 @ 102 (b) (f)		500,000		484,750
Cott Holdings, Inc., 5.50%, 4/1/25, Callable 4/1/20 @ 104.13 (e) (f)		500,000		486,740
Dole Food Co., Inc., 7.25%, 6/15/25, Callable 6/15/20 @ 103.63 (f)		500,000		497,535
JBS USA LUX SA / JBS USA Finance, Inc., 6.75%, 2/15/28, Callable 2/15/23 @ 103.38 (b) (f)		330,000		311,731
Post Holdings, Inc., 5.00%, 8/15/26, Callable 8/15/21 @ 102.5 (f)		400,000		371,220
				2,594,476
Energy (8.8%):
Diamond Offshore Drilling, Inc., 4.88%, 11/1/43, Callable 5/1/43 @ 100		818,000		580,576
Endeavor Energy Resources LP/EER Finance, Inc., 5.50%, 1/30/26, Callable 1/30/21 @ 104.13 (f)		350,000		339,500
Ensco PLC, 5.75%, 10/1/44, Callable 4/1/44 @ 100 (e)		620,000		439,977
Hornbeck Offshore Services, Inc., 5.00%, 3/1/21, Callable 8/3/18 @ 101.25		650,000		426,147
Noble Holding International Ltd., 6.20%, 8/1/40		800,000		583,592
Transocean, Inc., 6.80%, 3/15/38 (e)		800,000		664,391
				3,034,183

See notes to financial statements.

4

Victory Variable Insurance Funds
Victory High Yield VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Financials (3.5%):
Algeco Global Finance 2 PLC, 10.00%, 8/15/23, Callable 2/15/20 @ 105 (b) (e) (f)	$	550,000	$	555,071
ASP AMC Merger Sub, Inc., 8.00%, 5/15/25, Callable 5/15/20 @ 104 (e) (f)		250,000		207,615
Compass Group Diversified Holdings LLC, 8.00%, 5/1/26, Callable 5/1/21 @ 104 (e) (f)		500,000		488,360
				1,251,046
Health Care (10.9%):
Air Medical Group Holdings, Inc., 6.38%, 5/15/23, Callable 8/3/18 @ 103.19 (b) (f)		500,000		465,460
Avantor, Inc., 9.00%, 10/1/25, Callable 10/1/20 @ 106.75 (b) (e) (f)		500,000		503,950
Ortho-Clinical Diagnostics, Inc., 6.63%, 5/15/22, Callable 8/3/18 @ 101.66 (b) (e) (f)		500,000		493,255
Polaris Intermediate Corp., 8.50%, 12/1/22, Callable 6/1/19 @ 104 (e) (f)		330,000		340,362
Sotera Health Topco, Inc., 8.13%, 11/1/21, Callable 8/3/18 @ 102 (f)		500,000		505,935
Surgery Center Holdings, 6.75%, 7/1/25, Callable 7/1/20 @ 103.38 (b) (f)		500,000		476,590
Valeant Pharmaceuticals International, Inc., 5.88%, 5/15/23, Callable 8/3/18 @ 102.94 (e) (f)		500,000		469,460
Vizient, Inc., 10.38%, 3/1/24, Callable 3/1/19 @ 107.78 (f)		500,000		551,855
				3,806,867
Industrials (13.9%):
Ahern Rentals, Inc., 7.38%, 5/15/23, Callable 8/3/18 @ 105.53 (e) (f)		500,000		487,490
Beacon Escrow Corp., 4.88%, 11/1/25, Callable 11/1/20 @ 102.44 (b) (f)		470,000		433,072
BlueLine Rental Finance Corp./BlueLine Rental LLC, 9.25%, 3/15/24, Callable 3/15/20 @ 104.63 (f)		500,000		531,795
Covanta Holding Corp., 5.88%, 7/1/25, Callable 7/1/20 @ 104.41		500,000		482,640
Flexi-Van Leasing, Inc., 10.00%, 2/15/23, Callable 2/15/20 @ 107.5 (f)		170,000		160,932
Manitowoc Foodservice, Inc., 9.50%, 2/15/24, Callable 2/15/19 @ 107.13		400,000		440,416
Pisces Midco, Inc., 8.00%, 4/15/26, Callable 4/15/21 @ 104 (f)		500,000		480,705
SRS Distribution, Inc., 8.25%, 7/1/26, Callable 7/1/21 @ 104.13 (b) (e) (f)		500,000		498,025
Triumph Group, Inc., 4.88%, 4/1/21, Callable 8/3/18 @ 101.22		500,000		484,720
W/S Packaging Holdings, Inc., 9.00%, 4/15/23, Callable 4/15/20 @ 104.5 (e) (f)		400,000		405,004
XPO Logistics, Inc., 6.50%, 6/15/22, Callable 8/3/18 @ 103.25 (b) (f)		400,000		409,516
				4,814,315
Information Technology (1.8%):
Hughes Satellite Systems Corp., 6.63%, 8/1/26		500,000		463,090
Travelport Corporate Finance PLC, 6.00%, 3/15/26, Callable 3/15/21 @ 103 (f)		160,000		161,142
				624,232
Materials (1.9%):
Plastipak Holdings, Inc., 6.25%, 10/15/25, Callable 10/15/20 @ 103.13 (f)		330,000		303,923
Reynolds Group Issuer, Inc., 7.00%, 7/15/24, Callable 7/15/19 @ 103.5 (f)		345,000		352,225
				656,148
Telecommunication Services (3.4%):
Intelsat Jackson Holdings SA, 5.50%, 8/1/23, Callable 8/3/18 @ 102.75		500,000		448,960
Telesat Canada/Telesat LLC, 8.88%, 11/15/24, Callable 11/15/19 @ 106.66 (e) (f)		500,000		539,670

See notes to financial statements.

5

Victory Variable Insurance Funds
Victory High Yield VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares or Principal Amount		Value
Windstream Services LLC/Windstream Finance Corp., 8.75%, 12/15/24, Callable 12/15/22 @ 102.5 (e) (f)	$	223,000	$	141,621
				1,130,251
Total Corporate Bonds (Cost $23,496,469)				23,333,374
Collateral for Securities Loaned (13.3%)
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (g)		609,550		609,550
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (g)		554,156		554,156
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (g)		1,253,178		1,253,178
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (g)		277,045		277,046
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (g)		1,440,596		1,440,596
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (g)		498,682		498,682
Total Collateral for Securities Loaned (Cost $4,633,208)				4,633,208
Total Investments (Cost $39,025,058) — 111.3%				38,723,401
Liabilities in excess of other assets — (11.3)%				(3,938,716	)
NET ASSETS — 100.0%			$	34,784,685

(a)  Non-income producing security.

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

(c)  Variable or Floating-Rate Security. Rate disclosed is as of June 30, 2018.

(d)  Security purchased on a when-issued basis.

(e)  All or a portion of this security has been segregated as collateral for securities purchased on a when-issued basis.

(f)  Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2018, the fair value of these securities was $14,925,693 and amounted to 42.9% of net assets.

(g)  Rate disclosed is the daily yield on June 30, 2018.

bps — Basis points

LIBOR — London InterBank Offered Rate

LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LIBOR02M — 2 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LIBOR03M — 3 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LLC — Limited Liability Company

LP — Limited Partnership

PLC — Public Limited Company

See notes to financial statements.

6

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory High Yield VIP Series
ASSETS:
Investments, at value (Cost $39,025,058)	$	38,723,401	(a)
Cash and cash equivalents		1,404,829
Interest and dividends receivable		468,585
Receivable for capital shares issued		157
Receivable for investments sold		85,101
Prepaid expenses		995
Total Assets		40,683,068
LIABILITIES:
Securities lending collateral		4,633,208
Payable for investments purchased		1,215,500
Payable for capital shares redeemed		10,600
Accrued expenses and other payables:
Investment advisory fees		17,306
Administration fees		1,759
Custodian fees		2,157
Transfer agent fees		82
Chief Compliance Officer fees		47
Trustees' fees		50
Other accrued expenses		17,674
Total Liabilities		5,898,383
NET ASSETS:
Capital		37,644,817
Accumulated net investment income (loss)		1,257,911
Accumulated net realized gains (losses) from investments		(3,816,386	)
Net unrealized appreciation (depreciation) on investments		(301,657	)
Net Assets	$	34,784,685
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		4,986,965
Net asset value:	$	6.98

(a)  Includes $4,453,970 of securities on loan.

See notes to financial statements.

7

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory High Yield VIP Series
Investment Income:
Dividend income	$	10,440
Interest income		1,213,946
Securities lending income		30,758
Total Income		1,255,144
Expenses:
Investment advisory fees		107,646
Administration fees		10,555
Custodian fees		4,940
Transfer agent fees		173
Trustees' fees		1,517
Chief Compliance Officer fees		158
Legal and audit fees		8,942
Other expenses		12,024
Total Expenses		145,955
Net Investment Income (Loss)		1,109,189
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions		184,797
Net change in unrealized appreciation/depreciation on investments		(677,327	)
Net realized/unrealized gains (losses) on investments		(492,530	)
Change in net assets resulting from operations	$	616,659

See notes to financial statements.

8

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory High Yield VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	1,109,189		$	2,315,794
Net realized gains (losses) from investment transactions		184,797			573,774
Net change in unrealized appreciation/depreciation on investments		(677,327	)		757,766
Change in net assets resulting from operations		616,659			3,647,334
Distributions to Shareholders:
From net investment income		—			(2,204,964	)
Change in net assets resulting from distributions to shareholders		—			(2,204,964	)
Change in net assets resulting from capital transactions		(3,231,895	)		(2,884,746	)
Change in net assets		(2,615,236	)		(1,442,376	)
Net Assets:
Beginning of period		37,399,921			38,842,297
End of period	$	34,784,685		$	37,399,921
Accumulated net investment income (loss)	$	1,257,911		$	148,722
Capital Transactions:
Proceeds from shares issued	$	599,834		$	2,746,992
Distributions reinvested		—			2,204,964
Cost of shares redeemed		(3,831,729	)		(7,836,702	)
Change in net assets resulting from capital transactions	$	(3,231,895	)	$	(2,884,746	)
Share Transactions:
Issued		86,843			394,480
Reinvested		—			321,893
Redeemed		(553,710	)		(1,121,744	)
Change in Shares		(466,867	)		(405,371	)

See notes to financial statements.

9

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory High Yield VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	6.86		$	6.63		$	6.13		$	6.90		$	7.70		$	7.71
Investment Activities:
Net investment income (loss)		0.21	(a)		0.42	(a)		0.41	(a)		0.43	(a)		0.50			0.54
Net realized and unrealized gains (losses) on investments		(0.09	)		0.24			0.53			(0.75	)		(0.56	)		(0.01	)
Total from Investment Activities		0.12			0.66			0.94			(0.32	)		(0.06	)		0.53
Distributions to Shareholders:
Net investment income		—			(0.43	)		(0.45	)		(0.44	)		(0.53	)		(0.54	)
Net realized gains from investments		—			—			—			—			(0.21	)		—
Return of Capital		—			—			—			(0.01	)		—			—
Total Distributions to Shareholders		—			(0.43	)		(0.45	)		(0.45	)		(0.74	)		(0.54	)
Capital Contributions from Prior Custodian, Net (See Note 8)		—			—			0.01			—			—			—
Net Asset Value, End of Period	$	6.98		$	6.86		$	6.63		$	6.13		$	6.90		$	7.70
Total Return (b) (c)		1.60	%		9.94	%		15.44	%(d)		(4.58	)%		(0.84	)%		6.94	%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	34,785		$	37,411		$	38,842		$	38,503		$	44,533		$	62,379
Ratio of net expenses to average net assets (e)		0.81	%		0.79	%		0.87	%		0.89	%		0.82	%		0.74	%
Ratio of net investment income (loss) to average net assets (e)		6.18	%		6.02	%		6.31	%		6.15	%		5.68	%		5.90	%
Ratio of gross expenses to average net assets (e)		0.81	%		0.79	%		0.87	%(f)		0.89	%		0.82	%		0.74	%
Portfolio turnover (c)		57	%		173	%		159	%		148	%		212	%		92	%

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

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

(c)  Not annualized for periods less than one year.

(d)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was 0.15% for the period shown. (See Note 8).

(e)  Annualized for periods less than one year.

(f)  During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratios would have been as indicated.

See notes to financial statements.

10

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory High Yield VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to provide long-term capital appreciation.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the NASDAQ Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security

11

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	LEVEL 1 — Quoted Prices		LEVEL 2 — Other Significant Observable Inputs		Total
	Investments in Securities		Investments in Securities		Investments in Securities
Common Stocks	$	973,910	$	—	$	973,910
Corporate Bonds		—		23,333,374		23,333,374
Senior Secured Loans		—		9,782,909		9,782,909
Collateral for Securities Loaned		4,633,208		—		4,633,208
Total	$	5,607,118	$	33,116,283	$	38,723,401

There were no transfers among any levels during the six months ended June 30, 2018.

Securities Purchased on a When-Issued Basis:

The Fund may purchase securities on a when-issued basis. When-issued securities are securities purchased for delivery beyond normal settlement periods at a stated price and/or yield, thereby involving the risk that the price and/or yield obtained may be more or less than those available in the market when delivery takes place. At the time the Fund makes the commitment to purchase a security on a when-issued basis, the Fund records the transaction and reflects the value of the security in determining net asset value. No interest accrues to the Fund until the transaction settles and payment takes place. Normally, the settlement date occurs within one month of the purchase. A segregated account is established and the Fund maintains cash and/or marketable securities at least equal in value to commitments for when-issued securities. Values of when-issued securities are included in "Payable for investments purchased" on the accompanying Statement of Assets and Liabilities. As of June 30, 2018, the Fund had $1,150,436 outstanding when-issued purchase commitments covered by the segregated assets as identified in the Schedules of Portfolio Investments.

12

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Loans:

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

The Fund may purchase second lien loans (secured loans with a claim on collateral subordinate to a senior lender's claim on such collateral), fixed rate loans, unsecured loans, and other debt obligations.

Transactions in loans often settle on a delayed basis, and the Fund may not receive the proceeds from the sale of a loan or pay for a loan purchase for a substantial period of time after entering into the transactions.

Below Investment Grade Securities:

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

Investment Companies:

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

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

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

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted on the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund.

The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	4,453,970	$	4,633,208	$	179,238

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases		Sales
$	19,905,801	$	20,655,079

For the six months ended June 30, 2018, there were no purchases or sales of U.S. Government Securities.

4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

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

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.60% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust

15

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 0.89%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2019
$	29

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in

16

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date of July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

Interfund Lending:

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

The Fund did not utilize or participate in the Facility during the six months ended June 30, 2018.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid):

Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	2,204,964	$	—	$	2,204,964

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Capital and Other Losses		Undistributed Long-Term Capital Gains			Unrealized Appreciation (Depreciation)*		Total Accumulated Earnings (Deficit)
$	148,721	$	—	$	148,721	$	(4,001,182	)	$	375,670	$	(3,476,791	)

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

During the most recent tax year ended December 31, 2017, the Fund utilized $570,449 capital loss carryforwards.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	39,025,058	$	619,503	$	(921,160	)	$	(301,657	)

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
GIAC		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for

18

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

19

Victory Variable Insurance Funds Supplemental Information
June 30, 2018

  (Unaudited)

Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016-December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.)(since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

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Victory Variable Insurance Funds Supplemental Information — continued
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Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011-2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013),	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

22

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,016.00	$	4.05		0.81	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

23

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June 30, 2018

  (Unaudited)

Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,020.78	$	4.06		0.81	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

24

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Portfolio Holdings:

(As a Percentage of Total Investments)

25

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-HYVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory INCORE Low Duration Bond VIP Series

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	11
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Financial Statements	15
Supplemental Information
Trustee and Officer Information	26
Proxy Voting and Form N-Q Information	29
Expense Examples	29
Portfolio Holdings	31
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

1

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2

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Victory INCORE Low Duration Bond VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Asset Backed Securities (15.2%)
Ally Auto Receivables Trust , Series 2014-2, Class B, 2.10%, 3/16/20, Callable 7/15/18 @ 100	$	1,000,000	$	999,713
American Express Credit Account Master Trust , Series 2013-1, Class A, 2.49%, (LIBOR01M+42bps), 2/16/21 (a) (b)		1,800,000		1,800,171
American Express Credit Account Master Trust , Series 2014-1, Class B, 2.57%, (LIBOR01M+50bps), 12/15/21 (a) (b)		2,100,000		2,103,661
AmeriCredit Automobile Receivables Trust , Series 2015-3, Class D, 3.34%, 8/8/21, Callable 12/8/19 @ 100 (b)		1,675,000		1,680,328
AmeriCredit Automobile Receivables Trust , Series 2018-1, Class B, 3.26%, 1/18/24, Callable 10/18/21 @ 100		2,800,000		2,785,443
AmeriCredit Automobile Receivables Trust , Series 2016-3, Class C, 2.24%, 4/8/22, Callable 11/8/20 @ 100 (b)		1,635,000		1,608,559
AmeriCredit Automobile Receivables Trust , Series 2017-2, Class B, 2.40%, 5/18/22, Callable 11/18/20 @ 100 (b)		1,385,000		1,361,832
Avis Budget Rental Car Funding (AESOP) LLC , Series 2014-1, Class A, 2.46%, 7/20/20 (c)		1,250,000		1,244,284
Avis Budget Rental Car Funding (AESOP) LLC , Series 2013-1A, Class A, 1.92%, 9/20/19 (c)		1,350,000		1,348,422
CarMax Auto Owner Trust , Series 2015-2, Class A3, 1.37%, 3/16/20, Callable 7/15/19 @ 100		405,950		404,888
Chase Issuance Trust , Series 2015-A7, Class A7, 1.62%, 7/15/20		2,000,000		1,999,349
Chrysler Capital Auto Receivables Trust , Series 2016-BA, Class B, 2.22%, 5/16/22, Callable 3/15/21 @ 100 (c)		1,700,000		1,664,519
CNH Equipment Trust , Series 2014-B, Class A4, 1.61%, 5/17/21, Callable 7/15/18 @ 100 (b)		356,488		356,348
Drive Auto Receivables Trust , Series 2017-AA, Class C, 2.98%, 1/18/22, Callable 9/15/20 @ 100 (c)		885,000		884,896
Drive Auto Receivables Trust , Series 2017-1, Class B, 2.36%, 3/15/21, Callable 7/15/20 @ 100		1,035,000		1,033,719
Drive Auto Receivables Trust , Series 2018-2, Class B, 3.22%, 4/15/22, Callable 9/15/23 @ 100		3,600,000		3,601,292
DT Auto Owner Trust , Series 2017-2A, Class B, 2.44%, 2/15/21, Callable 9/15/20 @ 100 (c)		1,235,000		1,232,460
DT Auto Owner Trust , Series 2017-3A, Class B, 2.40%, 5/17/21, Callable 2/15/21 @ 100 (c)		740,000		736,768
GM Financing Automobile Leasing Trust , Series 2016-3, Class B, 1.97%, 5/20/20, Callable 5/20/19 @ 100		2,000,000		1,983,728
Nissan Auto Receivables Owner Trust , Series 2015-B, Class A3, 1.34%, 3/16/20, Callable 12/15/19 @ 100		656,720		654,574
Santander Drive Auto Receivables Trust , Series 2018-2, Class B, 3.03%, 9/15/22, Callable 7/15/22 @ 100		2,750,000		2,733,140
Santander Drive Auto Receivables Trust , Series 2017-2, Class B, 2.21%, 10/15/21, Callable 7/15/20 @ 100		1,600,000		1,589,659
Santander Drive Auto Receivables Trust , Series 2017-3, Class B, 2.19%, 3/15/22, Callable 1/15/21 @ 100		1,375,000		1,356,807
Santander Drive Auto Receivables Trust , Series 2016-3, Class C, 2.46%, 3/15/22, Callable 7/15/20 @ 100 (b)		2,770,000		2,752,067
Santander Retail Auto Lease Trust , Series 2018-A, Class B, 3.20%, 4/20/22, Callable 3/20/21 @ 100 (c)		1,585,000		1,573,670

See notes to financial statements.

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June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Synchrony Credit Card Master Note Trust , Series 2016-1, Class A, 2.04%, 3/15/22	$	1,150,000	$	1,145,658
Toyota Auto Receivables Owner Trust , Series 2016-A, Class A3, 1.25%, 3/16/20, Callable 11/15/19 @ 100		756,073		752,459
World Financial Network Credit Card Master Trust , Series 2017-A, Class A, 2.12%, 3/15/24		1,610,000		1,582,483
Total Asset Backed Securities (Cost $43,238,292)				42,970,897
Collateralized Mortgage Obligations (7.3%)
BX Trust , Series 2017-APPL, Class A, 2.95%, (LIBOR01M+88bps), 7/15/34 (a) (b) (c)		2,713,120		2,714,964
BX Trust , Series 2017-SLCT, Class B, 3.27%, (LIBOR01M+120bps), 7/15/34 (a) (b) (c)		3,000,000		3,005,934
COMM Mortgage Trust , Series 2014-CR15, Class A2, 2.93%, 2/10/47 (b)		1,965,023		1,965,571
Drive Auto Receivables Trust , Series 2016-CA, Class B, 2.37%, 11/16/20, Callable 11/15/20 @ 100 (c)		998,744		998,331
Galaxy CLO Ltd. , Series 2017-24A, Class A, 2.75% (LIBOR03M+112bps), 1/15/31, Callable 1/15/20 @ 100 (a) (c)		1,000,000		1,001,910
Great Wolf Trust , Series 2017-WOLF, Class A, 3.07% (LIBOR01M+85bps), 9/15/34 (a) (b) (c)		2,000,000		2,002,340
GS Mortgage Securities Trust , Series 2013-GC16, Class A2, 3.03%, 11/10/46		1,260,047		1,260,256
GS Mortgage Securities Trust , Series 2012-GC6, Class B, 5.84%, 1/10/45 (a) (b) (c)		2,000,000		2,124,900
JPMBB Commercial Mortgage Securities Trust , Series 2013-C15, Class A2, 2.98%, 11/15/45		301,969		301,967
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-C16, Class A2, 3.07%, 12/15/46 (b)		772,148		772,371
Morgan Stanley BAML Trust , Series 2013-C13, Class A2, 2.94%, 11/15/46 (b)		1,451,648		1,451,422
Steele Creek CLO Ltd. , Series 2017-1A, Class A, 2.88%, (LIBOR03M+125bps), 1/15/30, Callable 1/15/20 @ 100 (a) (b) (c)		2,175,000		2,178,256
Voya CLO Ltd. , Series 2017-4A, Class A1, 2.51%, (LIBOR03M+113bps), 10/15/30, Callable 10/15/19 @ 100 (a) (c)		1,000,000		1,000,950
Total Collateralized Mortgage Obligations (Cost $20,990,417)				20,779,172
Residential Mortgage Backed Securities (4.5%)
Ameriquest Mortgage Securities, Inc. , Series 2003-5, Class A6, 4.03%, 4/25/33, Callable 7/25/18 @ 100 (a)		10,538		10,538
Bear Stearns Alt-A Trust , Series 2004-6, Class 1A, 2.73% (LIBOR01M+64bps), 7/25/34, Callable 7/25/18 @ 100 (a) (b)		207,355		206,372
Bear Stearns Alt-A Trust , Series 2003-3, Class 2A, 3.67%, 10/25/33, Callable 7/25/18 @ 100 (a) (b)		554,872		554,872
Countrywide Home Loans, Inc. , Series 2002-19, Class 1A1, 6.25%, 11/25/32, Callable 7/25/18 @ 100		9,161		9,161
Credit Suisse First Boston Mortgage Securities Corp. , Series 2004-5, Class 5A1, 5.00%, 8/25/19, Callable 10/25/18 @ 100		17,375		17,267
Credit Suisse First Boston Mortgage Securities Corp. , Series 2004-AR7, Class 4A1, 3.86%, 11/25/34, Callable 7/25/18 @ 100 (a) (b)		532,372		532,372

See notes to financial statements.

4

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June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Credit Suisse First Boston Mortgage Securities Corp. , Series 2003-23, Class 2A8, 4.50%, 10/25/18 (b)	$	2,832	$	2,819
JPMorgan Mortgage Trust , Series 2016-4, Class A5, 3.50%, 10/25/46, Callable 5/25/35 @ 100 (a) (b) (c)		724,425		716,575
JPMorgan Mortgage Trust , Series 2017-3, Class 2A2, 2.50%, 8/25/47, Callable 6/25/29 @ 100 (a) (b) (c)		2,630,063		2,526,352
JPMorgan Mortgage Trust , Series 2017-1, Class A5, 3.50%, 1/25/47, Callable 2/25/41 @ 100 (a) (b) (c)		1,017,294		1,013,002
JPMorgan Mortgage Trust , Series 2016-3, Class 1A3, 3.50%, 10/25/46, Callable 4/25/39 @ 100 (a) (b) (c)		1,471,216		1,455,160
JPMorgan Mortgage Trust , Series 2004-S1, Class 1A7, 5.00%, 9/25/34, Callable 7/25/18 @ 100 (b)		4,816		4,816
JPMorgan Mortgage Trust , Series 2004-S2, Class 1A3, 4.75%, 11/25/19, Callable 4/25/19 @ 100 (b)		7,773		7,889
JPMorgan Mortgage Trust , Series 2014-5, Class A11, 3.00%, 10/25/29, Callable 11/25/23 @ 100 (a) (b) (c)		2,242,001		2,199,397
Madison Park Funding Ltd. , Series 2017-26A, Class AR, 3.56%, (LIBOR03M+120bps), 7/29/30, Callable 10/29/19 @ 100 (a) (c)		1,750,000		1,751,751
Morgan Stanley Mortgage Loan Trust , Series 2005-6AR, Class 1A1, 2.37%, (LIBOR01M+28bps), 11/25/35, Callable 7/25/18 @ 100 (a) (b)		128,315		127,559
Prime Mortgage Trust , Series 2004-2, Class A2, 4.75%, 11/25/19, Callable 7/25/18 @ 100 (b)		12,775		12,775
Residential Asset Securities Corp. , Series 2005-KS1, Class M1, 2.77% (LIBOR01M+68bps), 2/25/35, Callable 7/25/18 @ 100 (a)		793,309		791,240
Residential Funding Mortgage Securities I, Inc. , Series 2005-S3, Class A1, 4.75%, 3/25/20, Callable 7/25/18 @ 100 (b)		5,398		5,398
Structured Asset Securities Corp. , Series 2004-21XS, Class 2A6A, 5.24%, 12/25/34, Callable 7/25/18 @ 100 (a) (b)		544		553
Structured Asset Securities Corp. , Series 2003-34A, Class 3A2, 3.81%, 11/25/33, Callable 7/25/18 @ 100 (a) (b)		368,060		368,060
Wells Fargo Mortgage Backed Securities Trust , Series 2003-J, Class 2A1, 3.48%, 10/25/33, Callable 7/25/18 @ 100 (a) (b)		29,827		29,827
Wells Fargo Mortgage Backed Securities Trust , Series 2004-Z, Class 2A2, 3.74%, 12/25/34, Callable 7/25/18 @ 100 (a) (b)		72,598		72,598
Wells Fargo Mortgage Backed Securities Trust , Series 2004-O, Class A1, 3.60%, 8/25/34, Callable 7/25/18 @ 100 (a) (b)		103,896		103,896
Wells Fargo Mortgage Backed Securities Trust , Series 2004-M, Class A7, 3.64%, 8/25/34, Callable 7/25/18 @ 100 (a) (b)		156,505		156,505
Total Residential Mortgage Backed Securities (Cost $12,932,464)				12,676,754
Corporate Bonds (45.8%)
Consumer Discretionary (4.4%):
Aptiv PLC, 3.15%, 11/19/20, Callable 10/19/20 @ 100		1,730,000		1,719,949
Best Buy Co., Inc.
5.00%, 8/1/18		1,390,000		1,392,182
5.50%, 3/15/21, Callable 12/15/20 @ 100		2,115,000		2,213,876
BorgWarner, Inc., 4.63%, 9/15/20 (b)		859,000		880,939
D.R Horton, Inc., 4.00%, 2/15/20		2,133,000		2,153,626
Hasbro, Inc., 3.15%, 5/15/21, Callable 3/15/21 @ 100		1,292,000		1,279,545

See notes to financial statements.

5

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June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Lennar Corp., 4.50%, 6/15/19, Callable 4/16/19 @ 100 (b)	$	640,000	$	644,128
O'Reilly Automotive, Inc., 4.88%, 1/14/21, Callable 10/14/20 @ 100 (b)		2,050,000		2,118,860
				12,403,105
Consumer Staples (2.0%):
Bat Capital Corp., 2.30%, 8/14/20 (c) (d)		1,250,000		1,222,875
Church & Dwight Co., Inc., 2.45%, 12/15/19, Callable 11/15/19 @ 100		1,515,000		1,504,683
Ingredion, Inc., 4.63%, 11/1/20 (d)		900,000		926,910
Molson Coors Brewing Co., 1.45%, 7/15/19 (d)		1,250,000		1,230,238
Pernod Ricard SA, 5.75%, 4/7/21 (c)		1,173,000		1,243,380
				6,128,086
Energy (5.0%):
Buckeye Partners LP, 2.65%, 11/15/18, Callable 10/15/18 @ 100 (b)		1,700,000		1,697,841
Enable Midstream Partner, 2.40%, 5/15/19, Callable 4/15/19 @ 100 (b)		2,900,000		2,880,598
LUKOIL International Finance BV, 6.13%, 11/9/20 (c)		2,815,000		2,952,879
Marathon Petroleum Corp., 3.40%, 12/15/20, Callable 11/15/20 @ 100		1,040,000		1,042,527
Pioneer Natural Resource Co.
7.50%, 1/15/20		1,135,000		1,207,050
3.45%, 1/15/21, Callable 12/15/20 @ 100		1,825,000		1,830,311
Texas Gas Transmission LLC, 4.50%, 2/1/21, Callable 11/1/20 @ 100 (c)		1,085,000		1,098,823
Western Gas Partners LP, 2.60%, 8/15/18, Callable 8/3/18 @ 100		1,475,000		1,474,115
				14,184,144
Financials (11.8%):
Alleghany Corp., 5.63%, 9/15/20		800,000		836,608
Bank of America Corp.
2.25%, 4/21/20, MTN		1,300,000		1,281,852
2.33%, (LIBOR03M+63bps), 10/1/21, Callable 10/1/20 @ 100 (a)		754,000		736,394
Capital One Financial Corp.
2.45%, 4/24/19, Callable 3/24/19 @ 100		710,000		707,735
2.50%, 5/12/20, Callable 4/12/20 @ 100		590,000		581,132
3.45%, 4/30/21, Callable 3/30/21 @ 100		3,500,000		3,492,089
3.08%, (LIBOR03M+72bps), 1/30/23, Callable 12/30/22 @ 100 (a)		1,500,000		1,490,010
Citigroup, Inc., 3.39%, (LIBOR03M+107bps), 12/8/21, Callable 11/8/21 @ 100 (a) (b)		1,500,000		1,525,770
Ford Motor Credit Co. LLC, 2.46%, 3/27/20 (b)		1,985,000		1,953,955
HSBC Holdings PLC, 3.82%, (LIBOR03M+150bps), 1/5/22 (a) (b)		750,000		772,118
JPMorgan Chase & Co., 3.59%, (LIBOR03M+123bps), 10/24/23, Callable 10/24/22 @ 100 (a) (b)		750,000		764,903
KeyBank NA, 1.60%, 8/22/19 (b)		3,000,000		2,957,400
Morgan Stanley
2.45%, 2/1/19 (b)		1,000,000		998,260
2.65%, 1/27/20		1,355,000		1,345,258
3.76%, (LIBOR03M+140bps), 10/24/23, Callable 10/24/22 @ 100 (a) (b)		750,000		766,725
Regions Bank, 2.25%, 9/14/18, Callable 8/14/18 @ 100 (b)		3,700,000		3,698,112
Regions Financial Corp., 3.20%, 2/8/21, Callable 1/8/21 @ 100		1,190,000		1,184,431
SVB Financial Group, 5.38%, 9/15/20		1,741,000		1,813,582
The Goldman Sachs Group, Inc., 3.51%, (LIBOR03M+117bps), 11/15/21, Callable 11/15/20 @ 100 (a) (b)		1,500,000		1,521,060

See notes to financial statements.

6

Victory Variable Insurance Funds
Victory INCORE Low Duration Bond VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
UBS Group Funding Switzerland AG, 2.95%, 9/24/20 (b) (c)	$	2,075,000	$	2,054,167
Unum Group, 3.00%, 5/15/21, Callable 4/15/21 @ 100 (b)		3,000,000		2,951,700
				33,433,261
Health Care (7.8%):
AbbVie, Inc., 2.00%, 11/6/18 (b) (c)		2,500,000		2,494,200
Agilent Technologies, Inc., 5.00%, 7/15/20		1,500,000		1,549,800
Amgen, Inc., 2.20%, 5/11/20 (b)		3,205,000		3,153,879
Bayer US Finance II LLC, 3.50%, 6/25/21, Callable 5/25/21 @ 100 (c) (d)		1,000,000		1,002,300
Biogen, Inc., 2.90%, 9/15/20		2,873,000		2,857,716
Celgene Corp., 2.88%, 2/19/21		3,020,000		2,988,501
Edwards Lifesciences Corp., 2.88%, 10/15/18 (d)		1,845,000		1,845,258
Express Scripts Holding Co., 2.25%, 6/15/19 (b)		2,390,000		2,372,075
Gilead Sciences, Inc., 1.85%, 9/4/18		2,000,000	��	1,997,540
Universal Health Services, Inc., 3.75%, 8/1/19 (b)		1,645,000		1,645,411
				21,906,680
Industrials (3.3%):
Acuity Brands Lighting, Inc., 6.00%, 12/15/19		1,330,000		1,381,285
Aercap Holdings NV, 4.63%, 10/30/20 (b)		2,015,000		2,053,507
Equifax, Inc., 3.60%, 8/15/21		1,000,000		998,520
Honeywell International, Inc., 1.80%, 10/30/19		744,000		735,236
IDEX Corp., 4.50%, 12/15/20, Callable 9/15/20 @ 100		1,150,000		1,172,575
Kansas City Southern, 2.35%, 5/15/20, Callable 4/15/20 @ 100		1,756,000		1,725,007
Spirit AeroSystems, Inc.(US0003M+80bps), 6/15/21, Callable 5/31/19 @ 100 (a)		1,000,000		1,001,830
				9,067,960
Information Technology (3.9%):
Alibaba Group Holding Ltd., 2.50%, 11/28/19, Callable 10/28/19 @ 100		999,000		992,157
Electronic Arts, Inc., 3.70%, 3/1/21, Callable 2/1/21 @ 100 (b)		2,255,000		2,275,791
Juniper Networks, Inc., 3.13%, 2/26/19 (b)		2,930,000		2,931,817
Lam Research Group, 2.80%, 6/15/21, Callable 5/15/21 @ 100		778,000		764,432
Maxim Integrated Product, Inc., 2.50%, 11/15/18		1,000,000		997,030
NetApp, Inc., 2.00%, 9/27/19 (d)		1,025,000		1,010,917
VMware, Inc., 2.30%, 8/21/20 (b)		2,110,000		2,063,264
				11,035,408
Materials (2.3%):
Anglo American Capital PLC, 4.13%, 4/15/21 (b) (c)		3,275,000		3,305,097
Newmont Mining Corp., 5.13%, 10/1/19 (b)		3,285,000		3,359,537
				6,664,634
Real Estate (1.8%):
Healthcare Trust of America Holdings LP, 3.38%, 7/15/21, Callable 5/15/21 @ 100		1,000,000		995,990
Highwoods Realty LP, 3.20%, 6/15/21, Callable 4/15/21 @ 100		2,200,000		2,167,110
Welltower, Inc., 6.13%, 4/15/20 (b)		1,906,000		1,995,449
				5,158,549

See notes to financial statements.

7

Victory Variable Insurance Funds
Victory INCORE Low Duration Bond VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
Telecommunication Services (1.5%):
AT&T, Inc., 2.45%, 6/30/20, Callable 5/30/20 @ 100	$	4,079,000	$	4,015,163
Level 3 Financing, Inc., 5.38%, 1/15/24, Callable 1/15/19 @ 102.69		325,000		317,935
				4,333,098
Utilities (2.0%):
Eversource Energy, 2.50%, 3/15/21, Callable 2/15/21 @ 100		1,950,000		1,911,722
Iberdrola Finance Ireland Ltd., 5.00%, 9/11/19 (b) (c)		3,290,000		3,359,681
				5,271,403
Total Corporate Bonds (Cost $131,007,996)				129,586,328
U.S. Government Mortgage Backed Agencies (10.6%)
Federal Home Loan Mortgage Corp.
5.00%, 6/15/23 – 8/1/40 (b)		1,132,781		1,205,210
5.50%, 10/25/23 (b)		7,896		8,237
Series 4430, Class NG2.50%, 2/15/38		2,254,607		2,223,419
7.00%, 9/1/38 (b)		7,432		8,436
Series 4320, Class AP3.50%, 7/15/39		1,090,133		1,093,551
Series 3713, Class PA2.00%, 2/15/40 – 3/15/40 (b)		8,180,466		7,965,246
Series 4049, Class AB2.75%, 12/15/41		706,558		698,125
				13,202,224
Federal National Mortgage Association
Series 2010-156, Class DY3.50%, 1/25/26 – 3/25/40		5,149,885		5,189,215
6.00%, 2/1/37 (b)		1,152,021		1,254,449
Series 2013-33, Class UD2.50%, 4/25/39		1,355,290		1,312,076
Series 2011-21, Class PA4.50%, 5/25/40 (b)		3,054,104		3,162,139
Series 2011-101, Class LA3.00%, 10/25/40		1,202,428		1,192,077
5.00%, 2/1/41 – 10/1/41 (b)		4,285,987		4,569,607
3.44%, (LIBOR12M+169bps), 8/1/46 (b)		11,534		12,159
				16,691,722
Total U.S. Government Mortgage Backed Agencies (Cost $30,576,617)				29,893,946
U.S. Treasury Obligations (14.5%)
U.S. Treasury Bills, 1.66%, 8/2/18 (b) (e)		12,000,000		11,981,738
U.S. Treasury Notes
1.13%, 1/31/19 (b)		8,337,000		8,285,116
1.63%, 8/31/19		11,805,000		11,698,446
2.25%, 3/31/20		9,000,000		8,959,597
Total U.S. Treasury Obligations (Cost $41,053,365)				40,924,897
Collateral for Securities Loaned (1.2%)
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (f)		456,302		456,302
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (f)		414,835		414,835
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (f)		938,115		938,115
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (f)		207,393		207,393

See notes to financial statements.

8

Victory Variable Insurance Funds
Victory INCORE Low Duration Bond VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Principal Amount		Value
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (f)	$	1,078,414	$	1,078,414
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (f)		373,307		373,307
Total Collateral for Securities Loaned (Cost $3,468,366)				3,468,366
Total Investments (Cost $283,267,517) — 99.1%				280,300,360
Other assets in excess of liabilities — 0.9%				2,506,842
NET ASSETS — 100.0%			$	282,807,202

(a)  Variable or Floating-Rate Security. Rate disclosed is as of June 30, 2018.

(b)  All or a portion of this security has been segregated as collateral for derivative instruments.

(c)  Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2018, the fair value of these securities was $51,259,454 and amounted to 18.1% of net assets.

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

(e)  Rate represents the effective yield at June 30, 2018.

(f)  Rate disclosed is the daily yield on June 30, 2018.

bps — Basis points

LIBOR — London InterBank Offered Rate

LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LIBOR03M — 3 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LIBOR12M — 12 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

LLC — Limited Liability Company

LP — Limited Partnership

MTN — Medium Term Note

PLC — Public Limited Company

US0003M — 3 Month US Dollar LIBOR, rate disclosed as of June 30, 2018, based on the last reset date of the security

Futures Contracts Purchased

	Number of Contracts		Expiration Date	Notional Amount		Value		Unrealized Appreciation (Depreciation)
2-Year U.S. Treasury Note Future		300	9/28/18	$	63,584,346	$	63,548,437	$	(35,909	)
5-Year U.S. Treasury Note Future		20	9/28/18		2,268,953		2,272,344		3,391
								$	(32,518	)
	Total unrealized appreciation							$	3,391
	Total unrealized depreciation								(35,909	)
	Total net unrealized depreciation							$	(32,518	)

See notes to financial statements.

9

Victory Variable Insurance Funds
Victory INCORE Low Duration Bond VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Centrally Cleared

Credit Default Swap Agreements — Sell Protection (a)

Underlying Instrument	Fixed Deal Received Rate			Maturity Date	Payment Frequency	Implied Credit Spread at June 30, 2018 (b)			Notional Amount (c)		Value		Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
CDX North America Investment Grade 5 Year Index; Series 30		1.00	%	6/20/23	Daily		0.67	%	$	15,000,000	$	225,648	$	267,939	$	(42,291	)
CDX North America High Yield Index; Series 30		5.00	%	6/20/23	Daily		3.60	%		18,000,000		1,063,251		1,042,650		20,601
											$	1,288,899	$	1,310,589	$	(21,690	)

(a)  When a credit event occurs as defined under the terms of the swap agreement, the Fund as a seller of credit protection will either (i) pay to the buyer of protection an amount equal to the par value of the defaulted reference entity and take delivery of the reference entity or (ii) pay a net amount equal to the par value of the defaulted reference entity less its recovery value.

(b)  Implied credit spread, represented in absolute terms, utilized in determining the value of the credit default swap agreements as of period end will serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a referenced entity reflects the cost of buying/selling protection and may include payments required to be made to enter into the agreement. Generally, wider credit spreads represent a perceived deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap agreement.

(c)  The notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection if a credit event occurs, as defined under the terms of the swap agreement, for each security included in the CDX North America High Yield Index or CDX North America Investment Grade 5 Year Index.

See notes to financial statements.

10

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory INCORE Low Duration Bond VIP Series
ASSETS:
Investments, at value (Cost $283,267,517)	$	280,300,360	(a)
Cash and cash equivalents		1,960,687
Deposits with broker for future contracts		565,475
Deposits with broker for swap agreements		2,125,234
Interest receivable		1,533,101
Variation margin receivable on open swap agreements		17,641
Receivable from Adviser		9,294
Prepaid expenses		7,896
Total Assets		286,519,688
LIABILITIES:
Securities lending collateral		3,468,366
Payable for capital shares redeemed		65,267
Variation margin payable on open future contracts		9,844
Accrued expenses and other payables:
Investment advisory fees		105,118
Administration fees		14,250
Custodian fees		3,669
Transfer agent fees		88
Chief Compliance Officer fees		351
Trustees' fees		22
Other accrued expenses		45,511
Total Liabilities		3,712,486
NET ASSETS:
Capital		286,357,617
Accumulated net investment income (loss)		3,798,598
Accumulated net realized gains (losses) from investments		(4,327,648	)
Net unrealized appreciation (depreciation) on investments		(3,021,365	)
Net Assets	$	282,807,202
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		27,587,825
Net asset value:	$	10.25

(a)  Includes $3,367,172 of securities on loan.

See notes to financial statements.

11

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory INCORE Low Duration Bond VIP Series
Investment Income:
Interest income	$	3,298,573
Securities lending income		7,408
Total Income		3,305,981
Expenses:
Investment advisory fees		650,890
Administration fees		85,150
Custodian fees		9,698
Transfer agent fees		334
Trustees' fees		11,747
Chief Compliance Officer fees		1,263
Legal and audit fees		20,832
Other expenses		38,816
Total Expenses		818,730
Expenses waived/reimbursed by Adviser		(52,266	)
Net Expenses		766,464
Net Investment Income (Loss)		2,539,517
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions		(148,631	)
Net realized gains (losses) from futures transactions		(343,606	)
Net realized gains (losses) from swap transactions		621,021
Net change in unrealized appreciation/depreciation on investments		(1,693,009	)
Net change in unrealized appreciation/depreciation on futures transactions		60,363
Net change in unrealized appreciation/depreciation on swap transactions		(159,029	)
Net realized/unrealized gains (losses) on investments		(1,662,891	)
Change in net assets resulting from operations	$	876,626

See notes to financial statements.

12

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory INCORE Low Duration Bond VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	2,539,517		$	4,149,385
Net realized gains (losses) from investment transactions		128,784			772,341
Net change in unrealized appreciation/depreciation on investments		(1,791,675	)		(357,681	)
Change in net assets resulting from operations		876,626			4,564,045
Distributions to Shareholders:
From net investment income		—			(4,147,757	)
Change in net assets resulting from distributions to shareholders		—			(4,147,757	)
Change in net assets resulting from capital transactions		(10,375,783	)		18,738,983
Change in net assets		(9,499,157	)		19,155,271
Net Assets:
Beginning of period		292,306,359			273,151,088
End of period	$	282,807,202		$	292,306,359
Accumulated net investment income (loss)	$	3,798,598		$	1,259,081
Capital Transactions:
Proceeds from shares issued	$	11,599,338		$	41,604,917
Distributions reinvested		—			4,147,757
Cost of shares redeemed		(21,975,121	)		(27,013,691	)
Change in net assets resulting from capital transactions	$	(10,375,783	)	$	18,738,983
Share Transactions:
Issued		1,136,050			4,044,038
Reinvested		—			406,245
Redeemed		(2,150,263	)		(2,620,215	)
Change in Shares		(1,014,213	)		1,830,068

See notes to financial statements.

13

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory INCORE Low Duration Bond VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	10.22		$	10.20		$	10.13		$	10.22		$	10.30		$	10.45
Investment Activities:
Net investment income (loss)		0.09	(a)		0.15	(a)		0.12	(a)		0.14	(a)		0.18			0.17
Net realized and unrealized gains (losses) on investments		(0.06	)		0.02			0.09			(0.09	)		(0.08	)		(0.15	)
Total from Investment Activities		0.03			0.17			0.21			0.05			0.10			0.02
Distributions to Shareholders:
Net investment income		—			(0.15	)		(0.14	)		(0.14	)		(0.18	)		(0.17	)
Total Distributions to Shareholders		—			(0.15	)		(0.14	)		(0.14	)		(0.18	)		(0.17	)
Capital Contributions from Prior Custodian, Net (see Note 8)		—			—			—	(b)		—			—			—
Net Asset Value, End of Period	$	10.25		$	10.22		$	10.20		$	10.13		$	10.22		$	10.30
Total Return (c) (d)		0.29	%		1.64	%		2.04	%(e)		0.47	%		0.92	%		0.24	%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	282,807		$	292,306		$	273,151		$	276,164		$	265,514		$	243,986
Ratio of net expenses to average net assets (f)		0.53	%		0.53	%		0.53	%		0.53	%		0.55	%		0.55	%
Ratio of net investment income (loss) to average net assets (f)		1.76	%		1.44	%		1.21	%		1.33	%		1.74	%		1.75	%
Ratio of gross expenses to average net assets (f) (g)		0.57	%		0.58	%		0.53	%		0.53	%		0.55	%		0.55	%
Portfolio turnover (d)		32	%		91	%(h)		55	%		38	%		39	%		60	%

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

(b)  Amount is less than $0.005 per share.

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

(d)  Not annualized for periods less than one year.

(e)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was less than 0.005% for the period shown. (See Note 8).

(f)  Annualized for periods less than one year.

(g)  During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratios would have been as indicated.

(h)  Portfolio turnover increase/decrease due to a change within the portfolio holdings during the year.

See notes to financial statements.

14

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory INCORE Low Duration Bond VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to provide a high level of current income consistent with preservation of capital.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

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

15

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Swap agreements, are valued at the mean between the current bid and ask prices. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	Level 1 — Quoted Prices					LEVEL 2 — Other Significant Observable Inputs					Total
	Investments in Securities		Other Financial Investments^			Investments in Securities		Other Financial Investments^			Investments in Securities		Other Financial Investments^
Asset Backed Securities	$	—	$	—		$	42,970,897	$	—		$	42,970,897	$	—
Collateralized Mortgage Obligations		—		—			20,779,172		—			20,779,172		—
Residential Mortgage Backed Securities		—		—			12,676,754		—			12,676,754		—
Corporate Bonds		—		—			129,586,328		—			129,586,328		—
U.S. Government Mortgage Backed Agencies		—		—			29,893,946		—			29,893,946		—
U.S. Treasury Obligations		—		—			40,924,897		—			40,924,897		—
Collateral for Securities Loaned		3,468,366		—			—		—			3,468,366		—
Futures Contracts		—		(32,518	)		—		—			—		(32,518	)
Credit Default Swaps		—		—			—		(21,690	)		—		(21,690	)
Total	$	3,468,366	$	(32,518	)	$	276,831,994	$	(21,690	)	$	280,300,360	$	(54,208	)

^  Other Financial instruments include any derivative instruments not reflected in the Schedule of Portfolio Investments as investment securities, such as futures contracts and swap agreements. These instruments are generally recorded in the financial statements at the unrealized gain or loss on the investment.

There were no transfers among any levels during the six months ended June 30, 2018.

16

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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Securities Purchased on a When-Issued Basis:

The Fund may purchase securities on a when-issued basis. When-issued securities are securities purchased for delivery beyond normal settlement periods at a stated price and/or yield, thereby involving the risk that the price and/or yield obtained may be more or less than those available in the market when delivery takes place. At the time the Fund makes the commitment to purchase a security on a when-issued basis, the Fund records the transaction and reflects the value of the security in determining net asset value. No interest accrues to the Fund until the transaction settles and payment takes place. Normally, the settlement date occurs within one month of the purchase. A segregated account is established and the Fund maintains cash and/or marketable securities at least equal in value to commitments for when-issued securities. If the Fund owns when-issued securities, these values are included in "Payable for investments purchased" on the accompanying Statement of Assets and Liabilities. As of June 30, 2018, the Fund had no outstanding when-issued purchase commitments.

Loans:

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

The Fund may purchase second lien loans (secured loans with a claim on collateral subordinate to a senior lender's claim on such collateral), fixed rate loans, unsecured loans, and other debt obligations.

Transactions in loans often settle on a delayed basis, and the Fund may not receive the proceeds from the sale of a loan or pay for a loan purchase for a substantial period of time after entering into the transactions.

Below Investment Grade Securities:

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

Investment Companies:

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

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June 30, 2018

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Derivative Instruments:

Futures Contracts:

The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Fund is presented on the Statement of Assets and Liabilities under Deposit with broker for futures contracts.

Credit Derivatives:

The Fund may enter into credit derivatives, including centrally-cleared credit default swaps on individual obligations or credit indices. The Fund may use these investments (i) as alternatives to direct long or short investment in a particular security or securities, (ii) to adjust the Fund's asset allocation or risk exposure, or (iii) for hedging purposes. The use by the Fund of credit default swaps may have the effect of creating a short position in a security. Credit derivatives can create investment leverage and may create additional investment risks that may subject the Fund to greater volatility than investments in more traditional securities, as described in the Fund's Statement of Additional Information.

Credit default swap ("CDS") agreements on credit indices involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of a specific sector of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the CDS.

The counterparty risk for cleared swap agreements is generally lower than uncleared over-the-counter swap agreements because generally a clearing organization becomes substituted for each counterparty to a cleared swap agreement and, in effect, guarantees each party's performance under the contract as each party to a trade looks only to the clearing organization for performance of financial obligations. However, there can be no assurance that the clearing organization, or its members, will satisfy its obligations to the Fund.

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June 30, 2018

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The Fund may enter into CDS agreements either as a buyer or seller. The Fund may buy protection under a CDS to attempt to mitigate the risk of default or credit quality deterioration in one or more individual holdings or in a segment of the fixed income securities market. The Fund may sell protection under a CDS in an attempt to gain exposure to an underlying issuer's credit quality characteristics without investing directly in that issuer.

For swaps entered with an individual counterparty, the Fund bears the risk of loss of the uncollateralized amount expected to be received under a CDS agreement in the event of the default or bankruptcy of the counterparty. CDS agreements are generally valued at a price at which the counterparty to such agreement would terminate the agreement. The Fund may also enter into cleared swaps.

Upon entering into a cleared CDS, the Fund may be required to deposit with the broker an amount of cash or cash equivalents in the range of approximately 3% to 6% of the notional amount for CDS on high yield debt issuers (this amount is subject to change by the clearing organization that clears the trade). This amount, known as "initial margin," is in the nature of a performance bond or good faith deposit on the CDS and is returned to a Fund upon termination of the CDS, assuming all contractual obligations have been satisfied. Subsequent payments, known as "variation margin," to and from the broker will be made daily as the price of the CDS fluctuates, making the long and short positions in the CDS contract more or less valuable, a process known as "marking-to-market." The premium (discount) payments are built into the daily price of the CDS and thus are amortized through the variation margin. The variation margin payment also includes the daily portion of the periodic payment stream.

The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a CDS agreement equals the notional amount of the agreement. Notional amounts of each individual CDS agreement outstanding as of period end for which the Fund is the seller of protection are disclosed on the Schedule of Portfolio Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, periodic interest payments, or net amounts received from the settlement of buy protection CDS agreements entered into by the Fund for the same referenced entity or entities.

As of June 30, 2018, the Fund entered into centrally cleared CDS agreements primarily for the strategy of asset allocation and risk exposure management.

Summary of Derivative Instruments:

The following table summarizes the fair values of derivative instruments on the Statement of Assets and Liabilities, categorized by risk exposure, as of June 30, 2018.

	Liabilities
	Variation Margin Payable on Open Futures Contracts*			Variation Margin Payable on Open Swap Agreements*
Credit Risk Risk Exposure	$	—		$	(21,690	)
Interest Rate Exposure		(32,518	)		—

**Includes cumulative appreciation/depreciation of futures contracts and centrally cleared swap agreements as reported in the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilities.

19

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the six months ended June 30, 2018.

	Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations					Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations
	Net Realized Gains (Losses) from Futures Transactions			Net Realized Gain (Losses) from Swap Transactions		Net Change in Unrealized Appreciation/ Depreciation on Futures Transactions		Net Change in Unrealized Appreciation/ Depreciation on Swap Transactions
Credit Risk Exposure	$	—		$	621,021	$	—	$	(159,029	)
Interest Rate Exposure		(343,606	)				60,363		—

All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The notional amount of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

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

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted on the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund.

The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	3,367,172	$	3,468,366	$	101,194

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases (excluding U.S. Government Securities)		Sales (excluding U.S. Government Securities)		Purchases of U.S. Government Securities		Sales of U.S. Government Securities
$	36,308,912	$	34,372,690	$	49,220,365	$	59,337,337

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.45% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 0.53%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2019		Expires 12/31/2020		Expires 12/31/2021
$	1,866	$	132,033	$	52,266

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date of July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Interfund Lending:

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

The Fund did not utilize or participate in the Facility during the six months ended June 30, 2018.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

Year Ended December 31, 2017
Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	4,147,757	$	—	$	4,147,757

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Accumulated Capital and Other Losses			Unrealized Appreciation (Depreciation)*			Total Accumulated Earnings (Deficit)
$	1,376,222	$	—	$	1,376,222	$	(4,475,537	)	$	(1,327,726	)	$	(4,427,041	)

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

During the most recent tax year ended December 31, 2017, the Fund did not utilize any capital loss carryforwards.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	283,293,144	$	162,466	$	(3,209,458	)	$	(3,046,992	)

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
GIAC		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

25

Victory Variable Insurance Funds Supplemental Information
June 30, 2018

  (Unaudited)

Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016-December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

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Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011-2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013)	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

27

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

28

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,002.90	$	2.63		0.53	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

29

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,022.17	$	2.66		0.53	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

30

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Portfolio Holdings:

(As a Percentage of Total Investments)

31

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-ILDBVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory RS International VIP Series

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	9
Statement of Operations	10
Statements of Changes in Net Assets	11
Financial Highlights	12
Notes to Financial Statements	13
Supplemental Information
Trustee and Officer Information	22
Proxy Voting and Form N-Q Information	25
Expense Examples	25
Portfolio Holdings	27
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

1

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2

Victory Variable Insurance Funds
Victory RS International VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Common Stocks (97.0%)
Australia (6.5%):
Financials (1.7%):
Macquarie Group Ltd.		29,958	$	2,729,714
Health Care (1.7%):
CSL Ltd.		19,596		2,788,799
Materials (1.9%):
BHP Billiton Ltd.		125,295		3,134,508
Real Estate (1.2%):
Scentre Group		623,542		2,025,517
				10,678,538
Belgium (1.0%):
Information Technology (1.0%):
Melexis NV		18,347		1,698,367
China (1.0%):
Information Technology (1.0%):
Tencent Holdings Ltd.		33,100		1,662,172
Denmark (2.8%):
Consumer Staples (2.8%):
Royal Unibrew A/S		58,997		4,688,994
France (8.9%):
Consumer Discretionary (2.8%):
Cie Generale des Etablissements Michelin		13,722		1,659,928
LVMH Moet Hennessy Louis Vuitton SA		9,064		3,009,177
				4,669,105
Energy (1.6%):
Total SA		42,256		2,565,821
Financials (1.4%):
AXA SA		96,926		2,368,078
Information Technology (1.8%):
Cap Gemini SA		21,804		2,921,716
Materials (1.3%):
Arkema SA		18,427		2,174,216
				14,698,936
Germany (8.6%):
Consumer Discretionary (0.9%):
Daimler AG, Registered Shares		24,186		1,549,160
Financials (2.1%):
Allianz SE		16,760		3,453,199
Health Care (1.1%):
Bayer AG		16,944		1,860,701

See notes to financial statements.

3

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Victory RS International VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Industrials (1.9%):
Siemens AG		11,771	$	1,550,773
Washtec AG		16,930		1,492,319
				3,043,092
Information Technology (1.6%):
SAP SE		23,386		2,698,943
Real Estate (1.0%):
Vonovia SE		35,164		1,671,188
				14,276,283
Greece (0.5%):
Energy (0.5%):
Motor Oil (Hellas) Corinth Refineries SA		40,382		810,674
Hong Kong (3.8%):
Financials (2.2%):
AIA Group Ltd.		185,200		1,613,395
BOC Hong Kong Holdings Ltd.		438,000		2,058,625
				3,672,020
Real Estate (1.3%):
CK Asset Holdings Ltd.		269,000		2,129,542
Utilities (0.3%):
HK Electric Investments & HK Electric Investments Ltd. (b)		505,000		481,447
				6,283,009
Ireland (1.0%):
Industrials (1.0%):
Experian PLC		67,303		1,659,964
Italy (3.4%):
Financials (0.7%):
Banca Generali SpA		48,844		1,212,232
Health Care (1.3%):
Recordati SpA		55,838		2,212,411
Utilities (1.4%):
Enel SpA		410,061		2,272,040
				5,696,683
Japan (22.3%):
Consumer Discretionary (2.5%):
Toyota Motor Corp.		65,100		4,210,522
Consumer Staples (1.5%):
Matsumotokiyoshi Holdings Co. Ltd.		56,600		2,540,202

See notes to financial statements.

4

Victory Variable Insurance Funds
Victory RS International VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Financials (2.8%):
Jafco Co. Ltd.		31,100	$	1,260,858
Mitsubishi UFJ Financial Group, Inc.		285,600		1,618,110
Tokio Marine Holdings, Inc.		37,000		1,731,215
				4,610,183
Health Care (2.4%):
Hoya Corp.		35,500		2,014,152
Shionogi & Co. Ltd. (c)		36,400		1,868,079
				3,882,231
Industrials (7.3%):
EN-Japan, Inc.		31,700		1,595,441
Fuji Electric Co. Ltd.		310,000		2,355,115
Hitachi Construction Machinery Co. Ltd.		42,200		1,368,310
ITOCHU Corp.		107,700		1,948,108
Kyowa Exeo Corp.		80,300		2,101,669
Okuma Corp.		18,200		959,795
Sanwa Holdings Corp.		164,900		1,742,819
				12,071,257
Information Technology (1.9%):
Fujitsu Ltd.		103,000		623,391
Oracle Corp. Japan		24,000		1,956,386
Ulvac, Inc.		15,500		591,356
				3,171,133
Materials (0.7%):
DIC Corp.		35,400		1,104,166
Real Estate (0.9%):
Sumitomo Realty & Development		38,000		1,399,538
Telecommunication Services (1.3%):
Nippon Telegraph & Telephone Corp.		47,200		2,144,493
Utilities (1.0%):
Chubu Electric Power Co., Inc.		115,100		1,726,089
				36,859,814
Macau (0.9%):
Consumer Discretionary (0.9%):
Wynn Macau Ltd.		435,600		1,395,979
Netherlands (4.0%):
Financials (0.8%):
ING Groep NV		91,548		1,314,022
Industrials (1.7%):
Wolters Kluwer NV		51,215		2,876,860
Telecommunication Services (1.5%):
Koninklijke KPN NV (c)		915,710		2,489,779
				6,680,661

See notes to financial statements.

5

Victory Variable Insurance Funds
Victory RS International VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Norway (2.0%):
Energy (0.7%):
Aker BP ASA		31,618	$	1,163,475
Financials (1.3%):
SpareBank 1 SMN		202,691		2,100,073
				3,263,548
Russian Federation (0.7%):
Materials (0.7%):
Evraz PLC		178,221		1,189,302
Singapore (0.8%):
Financials (0.8%):
DBS Group Holdings Ltd.		68,700		1,336,305
Spain (1.9%):
Financials (0.9%):
Banco Santander SA		265,968		1,421,343
Telecommunication Services (1.0%):
Telefonica SA		204,443		1,735,057
				3,156,400
Sweden (1.8%):
Industrials (1.8%):
Atlas Copco AB, Class B		83,891		2,186,233
Epiroc AB, Class B (d)		83,891		768,284
				2,954,517
Switzerland (6.9%):
Consumer Staples (2.3%):
Nestle SA, Registered Shares		49,727		3,855,442
Financials (0.4%):
UBS Group AG, Registered Shares		44,933		689,118
Health Care (4.2%):
Novartis AG		43,183		3,272,475
Roche Holding AG		16,363		3,631,732
				6,904,207
				11,448,767
United Kingdom (18.2%):
Consumer Discretionary (0.8%):
Next PLC		16,760		1,333,827
Consumer Staples (4.4%):
Britvic PLC		152,782		1,566,327
Diageo PLC		93,899		3,372,780
Unilever PLC		41,035		2,266,371
				7,205,478

See notes to financial statements.

6

Victory Variable Insurance Funds
Victory RS International VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Energy (2.9%):
BP PLC		189,224	$	1,439,447
Royal Dutch Shell PLC, Class A		99,418		3,440,111
				4,879,558
Financials (3.6%):
Close Brothers Group PLC		93,551		1,825,948
HSBC Holdings PLC		308,292		2,880,254
Prudential PLC		54,094		1,232,915
				5,939,117
Health Care (1.5%):
Smith & Nephew PLC		134,531		2,477,643
Industrials (1.5%):
RELX PLC		120,179		2,565,942
Materials (3.5%):
Croda International PLC		28,579		1,805,203
Rio Tinto PLC		71,647		3,948,343
				5,753,546
				30,155,111
Total Common Stocks (Cost $138,551,802)				160,594,024
Preferred Stocks (1.7%)
Japan (1.7%):
Consumer Staples (1.7%):
Ito En Ltd.		119,300		2,789,168
Total Preferred Stocks (Cost $1,966,816)				2,789,168
Collateral for Securities Loaned (0.2%)
United States (0.2%):
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (e)		33,239		33,239
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (e)		30,219		30,219
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (e)		68,337		68,337
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (e)		15,108		15,107
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (e)		78,557		78,557
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (e)		27,194		27,194
Total Collateral for Securities Loaned (Cost $252,653)				252,653
Total Investments (Cost $140,771,271) — 98.9%				163,635,845
Other assets in excess of liabilities — 1.1%				1,833,329
NET ASSETS — 100.0%			$	165,469,174

(a)  All securities were fair valued at June 30, 2018. See Note 2 for further information.

(b)  Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2018, the fair value of these securities was $481,447 and amounted to 0.3% of net assets.

See notes to financial statements.

7

Victory Variable Insurance Funds
Victory RS International VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

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

(d)  Non-income producing security.

(e)  Rate disclosed is the daily yield on June 30, 2018.

PLC — Public Limited Company

See notes to financial statements.

8

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory RS International VIP Series
ASSETS:
Investments, at value (Cost $140,771,271)	$	163,635,845	(a)
Foreign currency, at value (Cost $92,740)		92,923
Cash and cash equivalents		1,391,589
Interest and dividends receivable		332,128
Receivable for capital shares issued		1,861
Reclaims receivable		496,592
Receivable from Adviser		1,733
Prepaid expenses		4,855
Total Assets		165,957,526
LIABILITIES:
Securities lending collateral		252,653
Payable for capital shares redeemed		81,147
Accrued expenses and other payables:
Investment advisory fees		111,212
Administration fees		8,481
Custodian fees		5,507
Transfer agent fees		69
Chief Compliance Officer fees		215
Trustees' fees		33
Other accrued expenses		29,035
Total Liabilities		488,352
NET ASSETS:
Capital		135,154,961
Accumulated net investment income (loss)		3,683,203
Accumulated net realized gains (losses) from investments		3,765,359
Net unrealized appreciation (depreciation) on investments		22,865,651
Net Assets	$	165,469,174
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		9,519,208
Net asset value:	$	17.38

(a)  Includes $240,616 of securities on loan.

See notes to financial statements.

9

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory RS International VIP Series
Investment Income:
Dividend income	$	3,910,045
Interest income		7,499
Securities lending income		15,505
Foreign tax withholding		(417,852	)
Total Income		3,515,197
Expenses:
Investment advisory fees		697,906
Administration fees		51,484
Custodian fees		14,860
Transfer agent fees		273
Trustees' fees		7,145
Chief Compliance Officer fees		768
Legal and audit fees		13,817
Other expenses		29,729
Total Expenses		815,982
Expenses waived/reimbursed by Adviser		(5,075	)
Net Expenses		810,907
Net Investment Income (Loss)		2,704,290
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions and foreign currency translations		5,756,624
Net change in unrealized appreciation/depreciation on investments and foreign currency translations		(10,773,686	)
Net realized/unrealized gains (losses) on investments		(5,017,062	)
Change in net assets resulting from operations	$	(2,312,772	)

See notes to financial statements.

10

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory RS International VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	2,704,290		$	3,483,803
Net realized gains (losses) from investment transactions		5,756,624			13,118,897
Net change in unrealized appreciation/depreciation on investments		(10,773,686	)		24,614,558
Change in net assets resulting from operations		(2,312,772	)		41,217,258
Distributions to Shareholders:
From net investment income		—			(3,484,383	)
Change in net assets resulting from distributions to shareholders		—			(3,484,383	)
Change in net assets resulting from capital transactions		(13,736,273	)		(31,240,688	)
Change in net assets		(16,049,045	)		6,492,187
Net Assets:
Beginning of period		181,518,219			175,026,032
End of period	$	165,469,174		$	181,518,219
Accumulated net investment income (loss)	$	3,683,203		$	978,913
Capital Transactions:
Proceeds from shares issued		1,575,150			3,665,763
Distributions reinvested		—			3,484,383
Cost of shares redeemed		(15,311,423	)		(38,390,834	)
Change in net assets resulting from capital transactions		(13,736,273	)		(31,240,688	)
Share Transactions:
Issued		89,281			220,823
Reinvested		—			198,427
Redeemed		(860,977	)		(2,356,133	)
Change in Shares		(771,696	)		(1,936,883	)

See notes to financial statements.

11

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory RS International VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	17.64		$	14.31		$	14.39		$	14.63		$	17.26		$	19.88
Investment Activities:
Net investment income (loss)		0.27	(a)		0.31	(a)		0.30	(a)		0.31	(a)		0.39			0.33
Net realized and unrealized gains (losses) on investments		(0.53	)		3.36			(0.10	)		(0.19	)		(1.30	)		3.44
Total from Investment Activities		(0.26	)		3.67			0.20			0.12			(0.91	)		3.77
Distributions to Shareholders:
Net investment income		—			(0.34	)		(0.31	)		(0.32	)		(0.35	)		(0.31	)
Net realized gains from investments		—			—			—			(0.04	)		(1.37	)		(6.08	)
Total Distributions to Shareholders		—			(0.34	)		(0.31	)		(0.36	)		(1.72	)		(6.39	)
Capital Contributions from Prior Custodian, Net (See Note 8)		—			—			0.03			—			—			—
Net Asset Value, End of Period	$	17.38		$	17.64		$	14.31		$	14.39		$	14.63		$	17.26
Total Return (b) (c)		(1.47	)%		25.68	%		1.60	%(d)		0.84	%		(5.30	)%		20.11	%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	165,469		$	181,518		$	175,026		$	185,028		$	203,530		$	234,653
Ratio of net expenses to average net assets (e)		0.93	%		0.93	%		0.90	%		0.92	%		0.92	%		0.92	%
Ratio of net investment income (loss) to average net assets (e)		3.10	%		1.93	%		2.13	%		2.00	%		2.23	%		1.45	%
Ratio of gross expenses to average net assets (e) (f)		0.94	%		0.95	%		0.90	%		0.92	%		0.92	%		0.92	%
Portfolio turnover (c)		21	%		57	%		110	%		117	%		193	%		205	%

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

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

(c)  Not annualized for periods less than one year.

(d)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was 0.23% for the period shown. (See Note 8)

(e)  Annualized for periods less than one year.

(f)  During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratios would have been as indicated.

See notes to financial statements.

12

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory RS International VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to provide long-term capital appreciation.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

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

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

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

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	LEVEL 1 — Quoted Prices		LEVEL 2 — Other Significant Observable Inputs		Total
	Investments in Securities		Investments in Securities		Investments in Securities
Common Stocks	$	—	$	160,594,024	$	160,594,024
Preferred Stocks		—		2,789,168		2,789,168
Collateral for Securities Loaned		252,653		—		252,653
Total	$	252,653	$	163,383,192	$	163,635,845

There were no transfers among any levels during the six months ended June 30, 2018.

Investment Companies:

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

Derivative Instruments:

Foreign Exchange Currency Contracts:

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

14

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

foreign exchange currency contracts might be considered spot contracts (typically a contract of one week or less) or forward contracts (typically a contract term over one week). A spot contract is entered into for purposes of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. The Fund enters into foreign exchange currency contracts solely for spot or forward hedging purposes, and not for speculative purposes (i.e., the Fund does not enter into such contracts solely for the purpose of earning foreign currency gains). Each foreign exchange currency contract is adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of a contract at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a foreign exchange currency contract or if the value of the foreign currency changes unfavorably. In addition, the use of currency contracts does not eliminate fluctuations in the underlying prices of the securities. As of June 30, 2018, the Fund had no open forward foreign exchange currency contracts.

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted on the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund. The following table is a summary of the Fund's securities

15

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	240,616	$	252,653	$	12,037

Foreign Currency Translations:

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

Foreign Taxes:

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

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

16

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases		Sales
$	36,620,581	$	47,577,396

For the six months ended June 30, 2018, there were no purchases or sales of U.S. Government Securities.

4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.80% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

17

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 0.93%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2020		Expires 12/31/2021
$	39,115	$	5,075

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to foreign securities risk. Foreign securities are (including ADRs and other depository receipts) are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

The Fund will be subject to emerging market risk. Risk of investment in emerging markets include greater political and economic instability, greater volatility in currency exchange rates, less developed securities markets, possible trade barriers, currency transfer restrictions, a more limited number of potential buyers and issuers, an emerging market country's dependence on revenue from particular commodities or international aid, less governmental supervision and regulation, unavailability of currency hedging techniques, differences in auditing and financial reporting standards and less developed legal systems.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to

18

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date of July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

Interfund Lending:

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

The Fund did not utilize or participate in the Facility during the six months ended June 30, 2018.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

Year Ended December 31, 2017
Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	3,484,383	$	—	$	3,484,383

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Unrealized Appreciation/ (Depreciation)*		Total Accumulated Earnings/ (Deficit)
$	1,384,159	$	1,236,975	$	2,621,134	$	30,005,853	$	32,626,987

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

During the most recent tax year ended December 31, 2017, the Fund utilized $9,924,073 in capital loss carryforwards that were not subject to expiration.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	143,631,785	$	27,972,616	$	(7,968,556	)	$	20,004,060

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
GIAC		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for

20

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

21

Victory Variable Insurance Funds Supplemental Information
June 30, 2018

  (Unaudited)

Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016-December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

22

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011-2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013)	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

23

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

24

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	985.30	$	4.58		0.93	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

25

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,020.18	$	4.66		0.93	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

26

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Portfolio Holdings:

(As a Percentage of Total Investments)

27

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-IVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory RS Large Cap Alpha VIP Series

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	5
Statement of Operations	6
Statements of Changes in Net Assets	7
Financial Highlights	8
Notes to Financial Statements	9
Supplemental Information
Trustee and Officer Information	17
Proxy Voting and Form N-Q Information	20
Expense Examples	20
Portfolio Holdings	22
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

1

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2

Victory Variable Insurance Funds
Victory RS Large Cap Alpha VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Common Stocks (97.8%)
Banks (10.1%):
Comerica, Inc.		323,640	$	29,425,349
JPMorgan Chase & Co.		297,780		31,028,675
The PNC Financial Services Group, Inc.		172,360		23,285,836
U.S. Bancorp		337,430		16,878,249
				100,618,109
Capital Markets (2.0%):
E*TRADE Financial Corp. (a)		320,475		19,600,251
Consumer Discretionary (6.3%):
Aramark		297,970		11,054,687
Booking Holdings, Inc. (a)		8,070		16,358,616
LKQ Corp. (a)		395,460		12,615,174
MGM Resorts International		785,040		22,789,711
				62,818,188
Consumer Finance (1.9%):
Capital One Financial Corp.		209,510		19,253,969
Consumer Staples (8.4%):
CVS Health Corp.		387,765		24,952,678
Mondelez International, Inc., Class A		817,180		33,504,380
Post Holdings, Inc. (a) (b)		296,460		25,501,489
				83,958,547
Energy (11.9%):
Chevron Corp.		180,970		22,880,037
Devon Energy Corp.		468,411		20,591,348
Enterprise Products Partners LP		778,830		21,550,226
EQT Corp.		384,200		21,200,156
Helmerich & Payne, Inc.		155,650		9,924,244
Noble Energy, Inc. (b)		623,650		22,002,372
				118,148,383
Health Care (8.8%):
Allergan PLC		200,147		33,368,508
Qurate Retail, Inc. (a) (b)		667,354		14,161,252
UnitedHealth Group, Inc.		79,935		19,611,253
Zimmer Biomet Holdings, Inc.		185,590		20,682,150
				87,823,163
Industrials (6.3%):
Eaton Corp. PLC		199,150		14,884,471
Sensata Technologies Holding PLC (a) (b)		300,180		14,282,564
Southwest Airlines Co.		388,510		19,767,389
Union Pacific Corp.		97,850		13,863,388
				62,797,812
Information Technology (13.9%):
Alphabet, Inc., Class A (a)		39,225		44,292,478
Cognizant Technology Solutions Corp., Class A		250,117		19,756,742

See notes to financial statements.

3

Victory Variable Insurance Funds
Victory RS Large Cap Alpha VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
FleetCor Technologies, Inc. (a)		87,730	$	18,480,325
Microsoft Corp.		195,048		19,233,683
Visa, Inc., Class A		284,750		37,715,137
				139,478,365
Insurance (14.2%):
Aflac, Inc.		446,280		19,198,966
American International Group, Inc.		646,350		34,269,476
Arch Capital Group Ltd. (a)		786,510		20,811,055
Brown & Brown, Inc. (b)		1,089,790		30,219,876
Cincinnati Financial Corp.		283,430		18,950,130
Unum Group		472,230		17,467,788
				140,917,291
Materials (6.5%):
Ball Corp. (b)		818,680		29,104,074
Lyondellbasell Industries NV, Class A		68,998		7,579,430
Sealed Air Corp. (b)		643,490		27,316,151
				63,999,655
Real Estate (4.3%):
Equity Commonwealth (a)		668,330		21,052,395
Invitation Homes, Inc.		934,280		21,544,497
				42,596,892
Utilities (3.2%):
Duke Energy Corp.		226,450		17,907,666
Exelon Corp.		339,910		14,480,166
				32,387,832
Total Common Stocks (Cost $827,393,606)				974,398,457
Collateral for Securities Loaned (3.6%)
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (c)		4,752,215		4,752,215
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (c)		4,320,352		4,320,352
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (c)		9,770,119		9,770,119
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (c)		2,159,921		2,159,921
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (c)		11,231,280		11,231,280
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (c)		3,887,858		3,887,858
Total Collateral for Securities Loaned (Cost $36,121,745)				36,121,745
Total Investments (Cost $863,515,351) — 101.4%				1,010,520,202
Liabilities in excess of other assets — (1.4)%				(13,852,013	)
NET ASSETS — 100.0%			$	996,668,189

(a)  Non-income producing security.

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

(c)  Rate disclosed is the daily yield on June 30, 2018.

LP — Limited Partnership

PLC — Public Limited Company

See notes to financial statements.

4

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory RS Large Cap Alpha VIP Series
ASSETS:
Investments, at value (Cost $863,515,351)	$	1,010,520,202	(a)
Cash and cash equivalents		23,519,821
Interest and dividends receivable		618,726
Receivable for capital shares issued		2,357
Receivable from Adviser		40,957
Prepaid expenses		27,533
Total Assets		1,034,729,596
LIABILITIES:
Securities lending collateral		36,121,745
Payable for investments purchased		1,077,434
Payable for capital shares redeemed		313,718
Accrued expenses and other payables:
Investment advisory fees		417,859
Administration fees		50,980
Custodian fees		7,267
Transfer agent fees		294
Chief Compliance Officer fees		1,303
Trustees' fees		248
Other accrued expenses		70,559
Total Liabilities		38,061,407
NET ASSETS:
Capital		658,395,915
Accumulated net investment income (loss)		5,269,919
Accumulated net realized gains (losses) from investments		185,997,504
Net unrealized appreciation (depreciation) on investments		147,004,851
Net Assets	$	996,668,189
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		18,249,028
Net asset value:	$	54.61

(a)  Includes $35,272,409 of securities on loan.

See notes to financial statements.

5

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory RS Large Cap Alpha VIP Series
Investment Income:
Dividend income	$	7,344,294
Interest income		54,996
Securities lending income		36,359
Total Income		7,435,649
Expenses:
Investment advisory fees		2,569,145
Administration fees		301,937
Custodian fees		23,039
Transfer agent fees		959
Trustees' fees		41,267
Chief Compliance Officer fees		4,486
Legal and audit fees		56,157
Other expenses		65,724
Total Expenses		3,062,714
Expenses waived/reimbursed by Adviser		(237,611	)
Net Expenses		2,825,103
Net Investment Income (Loss)		4,610,546
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions		86,453,282
Net change in unrealized appreciation/depreciation on investments		(78,701,689	)
Net realized/unrealized gains (losses) on investments		7,751,593
Change in net assets resulting from operations	$	12,362,139

See notes to financial statements.

6

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory RS Large Cap Alpha VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	4,610,546		$	10,474,413
Net realized gains (losses) from investment transactions		86,453,282			103,673,960
Net change in unrealized appreciation/depreciation on investments		(78,701,689	)		62,191,294
Change in net assets resulting from operations		12,362,139			176,339,667
Distributions to Shareholders:
From net investment income		—			(10,800,168	)
Change in net assets resulting from distributions to shareholders		—			(10,800,168	)
Change in net assets resulting from capital transactions		(76,434,003	)		(125,399,135	)
Change in net assets		(64,071,864	)		40,140,364
Net Assets:
Beginning of period		1,060,740,053			1,020,599,689
End of period	$	996,668,189		$	1,060,740,053
Accumulated net investment income (loss)	$	5,269,919		$	659,373
Capital Transactions:
Proceeds from shares issued		4,257,228			8,905,556
Distributions reinvested		—			10,800,168
Cost of shares redeemed		(80,691,231	)		(145,104,859	)
Change in net assets resulting from capital transactions	$	(76,434,003	)	$	(125,399,135	)
Share Transactions:
Issued		77,957			181,681
Reinvested		—			199,449
Redeemed		(1,468,873	)		(2,937,643	)
Change in Shares		(1,390,916	)		(2,556,513	)

See notes to financial statements.

7

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory RS Large Cap Alpha VIP Series
	Six Months Ended June 30, 2018				Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	54.01			$	45.98		$	44.26		$	50.63		$	51.52		$	39.00
Investment Activities:
Net investment income (loss) (a)		0.24	(a)			0.51	(a)		0.50	(a)		0.60	(a)		0.73			0.63
Net realized and unrealized gains (losses) on investments		0.36				8.07			3.50			(1.64	)		6.21			14.40
Total from Investment Activities		0.60				8.58			4.00			(1.04	)		6.94			15.03
Distributions to Shareholders:
Net investment income		—				(0.55	)		(0.52	)		(0.67	)		(0.71	)		(0.63	)
Net realized gains from investments		—				—			(1.76	)		(4.66	)		(7.12	)		(1.88	)
Total Distributions to Shareholders		—		��		(0.55	)		(2.28	)		(5.33	)		(7.83	)		(2.51	)
Capital Contributions from Prior Custodian, Net (See Note 8)		—				—			—	(b)		—			—			—
Net Asset Value, End of Period	$	54.61			$	54.01		$	45.98		$	44.26		$	50.63		$	51.52
Total Return (c) (d)		1.13	%			18.67	%		9.03	%(e)		(2.01	)%		13.58	%		38.71	%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	996,668			$	1,060,740		$	1,020,600		$	1,015,821		$	1,148,698		$	1,154,305
Ratio of net expenses to average net assets (f)		0.55	%			0.55	%		0.54	%		0.55	%		0.55	%		0.54	%
Ratio of net investment income (loss) to average net assets (f) (g)		0.90	%			1.02	%		1.12	%		1.20	%		1.27	%		1.24	%
Ratio of gross expenses to average net assets (f) (g)		0.60	%			0.60	%		0.54	%		0.55	%		0.55	%		0.54	%
Portfolio turnover (d)		26	%			56	%		84	%		47	%		56	%		48	%

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

(b)  Amount is less than $0.005 per share.

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

(d)  Not annualized for periods less than one year.

(e)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was less than 0.01% for the period shown. (See Note 8)

(f)  Annualized for periods less than one year.

(g)  During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratios would have been as indicated.

See notes to financial statements.

8

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory RS Large Cap Alpha VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to provide long-term capital appreciation.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the NASDAQ Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security

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is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	LEVEL 1 — Quoted Prices		Total
	Investments in Securities		Investments in Securities
Common Stocks	$	974,398,457	$	974,398,457
Collateral for Securities Loaned		36,121,745		36,121,745
Total	$	1,010,520,202	$	1,010,520,202

There were no transfers among any levels during the six months ended June 30, 2018.

Investment Companies:

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

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

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Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted on the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund. The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	35,272,409	$	36,121,745	$	849,336

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and

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the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases		Sales
$	268,969,289	$	348,975,392

For the six months ended June 30, 2018, there were no purchases or sales of U.S. Government Securities.

4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.50% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

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Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 0.55%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2020		Expires 12/31/2021
$	522,796	$	237,611

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

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6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date of July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the year ended June 30, 2018.

Interfund Lending:

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

The Fund did not utilize or participate in the Facility during the six months ended June 30, 2018.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

Year Ended December 31, 2017
Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	10,800,168	$	—	$	10,800,168

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Unrealized Appreciation (Depreciation)*		Total Accumulated Earnings (Deficit)
$	12,275,459	$	87,279,277	$	99,554,736	$	226,355,399	$	325,910,135

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

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During the most recent tax year ended December 31, 2017, the Fund did not utilize any capital loss carryforwards.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	862,112,130	$	173,289,295	$	(24,881,223	)	$	148,408,072

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
GIAC		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

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11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

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Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016- December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

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Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011- 2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013).	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

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Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

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Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,011.30	$	2.74		0.55	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,022.07	$	2.76		0.55	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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Portfolio Holdings:

(As a Percentage of Total Investments)

22

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-LCAVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory RS Small Cap Growth Equity VIP Series

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	6
Statement of Operations	7
Statements of Changes in Net Assets	8
Financial Highlights	9
Notes to Financial Statements	10
Supplemental Information
Trustee and Officer Information	17
Proxy Voting and Form N-Q Information	20
Expense Examples	20
Portfolio Holdings	22
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

1

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2

Victory Variable Insurance Funds
Victory RS Small Cap Growth Equity VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Common Stocks (98.8%)
Communications Equipment (1.0%):
Lumentum Holdings, Inc. (a) (b)		19,543	$	1,131,540
Consumer Discretionary (17.6%):
At Home Group, Inc. (a) (b)		37,300		1,460,295
Burlington Stores, Inc. (a)		3,868		582,250
Delphi Technologies PLC		24,650		1,120,589
Dineequity, Inc. (b)		21,170		1,583,516
Eldorado Resorts, Inc. (a) (b)		28,100		1,098,710
Grand Canyon Education, Inc. (a)		16,089		1,795,693
Lithia Motors, Inc.		11,533		1,090,676
Monro Muffler Brake, Inc. (b)		17,170		997,577
Ollie's Bargain Outlet Holdings, Inc. (a) (b)		14,268		1,034,430
Planet Fitness, Inc., Class A (a)		45,560		2,001,906
Red Rock Resorts, Inc., Class A (b)		28,940		969,490
Steven Madden Ltd.		30,389		1,613,656
The Wendy's Co. (b)		92,330		1,586,229
Topbuild Corp. (a) (b)		14,120		1,106,161
Weight Watchers International, Inc. (a)		17,770		1,796,547
Wingstop, Inc.		17,290		901,155
				20,738,880
Consumer Staples (2.3%):
Nomad Foods Ltd. (a)		144,380		2,770,652
Electronic Equipment, Instruments & Components (1.1%):
Littelfuse, Inc. (b)		5,669		1,293,552
Energy (1.5%):
Newpark Resources, Inc. (a)		116,960		1,269,016
SRC Energy, Inc. (a) (b)		44,510		490,500
				1,759,516
Financials (4.8%):
LendingTree, Inc. (a) (b)		3,444		736,327
Primerica, Inc.		8,540		850,584
Texas Capital Bancshares, Inc. (a)		14,640		1,339,560
Walker & Dunlop, Inc.		14,640		814,716
Western Alliance BanCorp (a)		20,324		1,150,542
WisdomTree Investments, Inc.		84,860		770,529
				5,662,258
Health Care (24.9%):
Aimmune Therapeutics, Inc. (a) (b)		20,450		549,901
Amicus Therapeutics, Inc. (a)		105,809		1,652,737
Apellis Pharmaceuticals, Inc. (a) (b)		22,320		491,040
Aptinyx, Inc. (a)		20,880		504,670
Audentes Therapeutics, Inc. (a)		20,760		793,240
Bluebird Bio, Inc. (a)		8,392		1,317,124
Blueprint Medicines Corp. (a) (b)		13,046		828,160
Celyad SA, ADR (a) (b)		15,751		488,123
Diplomat Pharmacy, Inc. (a)		42,240		1,079,654

See notes to financial statements.

3

Victory Variable Insurance Funds
Victory RS Small Cap Growth Equity VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Exact Sciences Corp. (a)		23,770	$	1,421,208
Five Prime Therapeutics, Inc. (a)		33,517		529,904
Globus Medical, Inc., Class A (a)		30,450		1,536,506
GW Pharmaceuticals PLC, ADR (a)		9,320		1,300,513
HealthEquity, Inc. (a) (b)		13,610		1,022,111
Immunomedics, Inc. (a) (b)		64,320		1,522,454
Insulet Corp. (a) (b)		16,000		1,371,200
Iovance Biotherapeutics, Inc. (a)		73,304		938,291
Irhythm Technologies, Inc. (a) (b)		5,960		483,535
Kura Oncology, Inc. (a)		42,940		781,508
Ligand Pharmaceuticals, Inc., Class B (a)		7,648		1,584,436
Loxo Oncology, Inc. (a)		10,186		1,767,066
Madrigal Pharmaceuticals, Inc. (a) (b)		4,880		1,364,887
Masimo Corp. (a)		14,550		1,420,808
Penumbra, Inc. (a)		8,420		1,163,223
Sage Therapeutics, Inc. (a)		8,426		1,318,922
Sienna Biopharmaceuticals, Inc. (a) (b)		12,270		186,381
Teladoc, Inc. (a) (b)		25,330		1,470,407
Vital Therapies, Inc. (a) (b)		69,287		474,616
				29,362,625
Industrials (13.9%):
Altra Industrial Motion Corp. (b)		33,390		1,439,109
Azul SA, ADR (a) (b)		56,030		916,651
Beacon Roofing Supply, Inc. (a) (b)		24,600		1,048,452
H&E Equipment Services, Inc.		44,590		1,677,030
Harsco Corp. (a)		72,560		1,603,576
Hexcel Corp.		10,573		701,836
Kennametal, Inc.		45,170		1,621,603
Proto Labs, Inc. (a)		7,320		870,714
Saia, Inc. (a)		19,410		1,569,299
Simpson Manufacturing Co., Inc.		18,520		1,151,759
Siteone Landscape Supply, Inc. (a) (b)		19,410		1,629,858
The Brink's Co.		7,680		612,480
Welbilt, Inc. (a)		70,920		1,582,225
				16,424,592
Internet Software & Services (8.4%):
Cornerstone OnDemand, Inc. (a)		25,380		1,203,773
Coupa Software, Inc. (a)		20,010		1,245,422
Envestnet, Inc. (a)		16,000		879,200
LogMeIn, Inc. (b)		16,570		1,710,853
Mindbody, Inc. (a) (b)		46,920		1,811,112
Q2 Holdings, Inc. (a)		16,470		939,614
Wix.com Ltd. (a) (b)		20,660		2,072,198
				9,862,172
IT Services (7.2%):
Black Knight, Inc. (a)		40,673		2,178,039
Euronet Worldwide, Inc. (a) (b)		21,803		1,826,437
InterXion Holding NV (a)		27,540		1,719,047

See notes to financial statements.

4

Victory Variable Insurance Funds
Victory RS Small Cap Growth Equity VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
WEX, Inc. (a)		5,860	$	1,116,213
WNS Holdings Ltd., ADR (a)		32,506		1,696,163
				8,535,899
Materials (4.1%):
Allegheny Technologies, Inc. (a)		63,750		1,601,400
Ashland Global Holdings, Inc.		19,330		1,511,219
Ferro Corp. (a)		80,830		1,685,306
				4,797,925
Semiconductors & Semiconductor Equipment (5.6%):
Advanced Energy Industries, Inc. (a)		9,340		542,561
Cypress Semiconductor Corp.		51,910		808,758
Integrated Device Technology, Inc. (a)		35,550		1,133,334
MKS Instruments, Inc.		12,080		1,156,055
Monolithic Power Systems, Inc.		7,777		1,039,552
Tower Semiconductor Ltd. (a)		39,544		870,363
Versum Materials, Inc.		29,180		1,084,037
				6,634,660
Software (6.4%):
Fair Isaac Corp. (a)		6,750		1,304,910
HubSpot, Inc. (a) (b)		8,610		1,079,694
Proofpoint, Inc. (a)		14,125		1,628,754
RingCentral, Inc., Class A (a)		49,748		3,499,772
				7,513,130
Total Common Stocks (Cost $85,697,544)				116,487,401
Collateral for Securities Loaned (17.8%)
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (c)		2,751,006		2,751,006
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (c)		2,501,005		2,501,005
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (c)		5,655,815		5,655,815
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (c)		1,250,355		1,250,355
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (c)		6,501,666		6,501,666
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (c)		2,250,639		2,250,639
Total Collateral for Securities Loaned (Cost $20,910,486)				20,910,486
Total Investments (Cost $106,608,030) — 116.6%				137,397,887
Liabilities in excess of other assets — (16.6)%				(19,593,989	)
NET ASSETS — 100.0%			$	117,803,898

(a)  Non-income producing security.

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

(c)  Rate disclosed is the daily yield on June 30, 2018.

ADR — American Depositary Receipt

PLC — Public Limited Company

See notes to financial statements.

5

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory RS Small Cap Growth Equity VIP Series
ASSETS:
Investments, at value (Cost $106,608,030)	$	137,397,887	(a)
Cash and cash equivalents		1,124,889
Interest and dividends receivable		34,910
Receivable for capital shares issued		500
Receivable for investments sold		1,609,787
Prepaid expenses		2,964
Total Assets		140,170,937
LIABILITIES:
Securities lending collateral		20,910,486
Payable for investments purchased		1,325,075
Payable for capital shares redeemed		32,056
Accrued expenses and other payables:
Investment advisory fees		74,699
Administration fees		6,074
Custodian fees		1,062
Transfer agent fees		51
Chief Compliance Officer fees		141
Trustees' fees		98
Other accrued expenses		17,297
Total Liabilities		22,367,039
NET ASSETS:
Capital		56,740,624
Accumulated net investment income (loss)		(222,838	)
Accumulated net realized gains (losses) from investments		30,496,255
Net unrealized appreciation (depreciation) on investments		30,789,857
Net Assets	$	117,803,898
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		5,093,370
Net asset value:	$	23.13

(a)  Includes $20,498,624 of securities on loan.

See notes to financial statements.

6

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory RS Small Cap Growth Equity VIP Series
Investment Income:
Dividend income	$	245,059
Interest income		8,084
Securities lending income		20,527
Total Income		273,670
Expenses:
Investment advisory fees		429,904
Administration fees		33,866
Custodian fees		3,795
Transfer agent fees		200
Trustees' fees		4,520
Chief Compliance Officer fees		485
Legal and audit fees		10,691
Interest expense on interfund lending (See Note 6)		72
Other expenses		12,975
Total Expenses		496,508
Net Investment Income (Loss)		(222,838	)
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions		14,687,927
Net change in unrealized appreciation/depreciation on investments		(586,325	)
Net realized/unrealized gains (losses) on investments		14,101,602
Change in net assets resulting from operations	$	13,878,764

See notes to financial statements.

7

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory RS Small Cap Growth Equity VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	(222,838	)	$	(476,134	)
Net realized gains (losses) from investment transactions		14,687,927			18,834,058
Net change in unrealized appreciation/depreciation on investments		(586,325	)		15,172,056
Change in net assets resulting from operations		13,878,764			33,529,980
Change in net assets resulting from capital transactions		(7,545,113	)		(19,301,445	)
Change in net assets		6,333,651			14,228,535
Net Assets:
Beginning of period		111,470,247			97,241,712
End of period	$	117,803,898		$	111,470,247
Accumulated net investment income (loss)	$	(222,838	)	$	—
Capital Transactions:
Proceeds from shares issued	$	3,786,193		$	3,530,550
Cost of shares redeemed		(11,331,306	)		(22,831,995	)
Change in net assets resulting from capital transactions	$	(7,545,113	)	$	(19,301,445	)
Share Transactions:
Issued		167,262			198,987
Redeemed		(516,509	)		(1,317,237	)
Change in Shares		(349,247	)		(1,118,250	)

See notes to financial statements.

8

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory RS Small Cap Growth Equity VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	20.48		$	14.82		$	14.61		$	17.47		$	18.87		$	14.83
Investment Activities:
Net investment income (loss)		(0.04	)(a)		(0.05	)(a)		(0.05	)(a)		(0.10	)(a)		(0.10	)		(0.10	)
Net realized and unrealized gains (losses) on investments		2.69			5.71			0.25			0.24			1.98			7.39
Total from Investment Activities		2.65			5.66			0.20			0.14			1.88			7.29
Distributions to Shareholders:
Net investment income		—			—			—			—			—			—
Net realized gains from investments		—			—			—			(3.00	)		(3.28	)		(3.25	)
Total Distributions to Shareholders		—			—			—			(3.00	)		(3.28	)		(3.25	)
Capital Contributions from Prior Custodian, Net (See Note 8)		—			—			0.01			—			—			—
Net Asset Value, End of Period	$	23.13		$	20.48		$	14.82		$	14.61		$	17.47		$	18.87
Total Return (b) (c)		12.94	%		38.19	%		1.44	%(d)		0.62	%		10.13	%		50.13	%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	117,804		$	111,470		$	97,242		$	106,962		$	118,144		$	120,565
Ratio of net expenses to average net assets (e)		0.87	%		0.87	%		0.88	%		0.88	%		0.86	%		0.85	%
Ratio of net investment income (loss) to average net assets (e)		(0.39	)%		(0.30	)%		(0.39	)%		(0.54	)%		(0.60	)%		(0.59	)%
Portfolio turnover (c)		35	%		71	%		91	%		88	%		95	%		101	%

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

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

(c)  Not annualized for periods less than one year.

(d)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was less than 0.01% for the period shown. (See Note 8)

(e)  Annualized for periods less than one year.

See notes to financial statements.

9

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory RS Small Cap Growth Equity VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to provide long-term capital growth.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the NASDAQ Official Closing Price. If there have been no sales for that day on the exchange or system, then a

10

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	LEVEL 1 — QuotedPrices		Total
	Investments in Securities		Investments in Securities
Common Stocks	$	116,487,401	$	116,487,401
Collateral for Securities Loaned		20,910,486		20,910,486
Total	$	137,397,887	$	137,397,887

There were no transfers among any levels during the six months ended June 30, 2018.

Investment Companies:

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

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

11

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted on the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund. The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	20,498,624	$	20,910,486	$	411,862

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases		Sales
$	40,051,735	$	48,358,779

For the six months ended June 30, 2018, there were no purchases or sales of U.S. Government Securities.

4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.75% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the

13

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 0.88%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2019
$	1,642

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

14

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date of July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

Interfund Lending:

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

The average loans for the days outstanding and average interest rate for the Fund during the six months ended June 30, 2018 was as follows:

Borrower or Lender	Amount Outstanding at June 30, 2018		Average Borrowing*		Days Borrowing Outstanding		Average Interest Rate			Interest Paid
Borrower	$	—	$	654,500		2		1.98	%	$	72

*For the six months ended June 30, 2018, based on the number of days borrowings were outstanding.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

For the most recent tax year ended December 31, 2017, there were no distributions paid.

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Unrealized Appreciation (Depreciation)*		Total Accumulated Earnings (Deficit)
$	411,846	$	16,074,061	$	16,485,907	$	30,698,603	$	47,184,510

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

During the most recent tax year ended December 31, 2017, the Fund utilized $1,605,196 in capital loss carryforwards.

15

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	107,304,527	$	33,793,620	$	(3,700,260	)	$	30,093,360

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
GIAC		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

16

Victory Variable Insurance Funds Supplemental Information
June 30, 2018

  (Unaudited)

Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016- December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

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Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011- 2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013)	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

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Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

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Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,129.40	$	4.59		0.87	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

20

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,020.48	$	4.36		0.87	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Portfolio Holdings:

(As a Percentage of Total Investments)

22

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-SCGEVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory S&P 500 Index VIP Series

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	15
Statement of Operations	16
Statements of Changes in Net Assets	17
Financial Highlights	18
Notes to Financial Statements	19
Supplemental Information
Trustee and Officer Information	28
Proxy Voting and Form N-Q Information	31
Expense Examples	31
Portfolio Holdings	33
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

1

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2

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Common Stocks (99.2%)
Communications Equipment (1.1%):
Cisco Systems, Inc.		25,405	$	1,093,177
F5 Networks, Inc. (a)		326		56,219
Harris Corp.		626		90,482
Juniper Networks, Inc.		1,813		49,712
Motorola Solutions, Inc.		854		99,380
				1,388,970
Consumer Discretionary (12.7%):
Advance Auto Parts, Inc.		390		52,923
Amazon.com, Inc. (a)		2,119		3,601,876
Aptiv PLC		1,402		128,465
AutoZone, Inc. (a)		144		96,614
Best Buy Co., Inc.		1,341		100,012
Booking Holdings, Inc. (a)		257		520,962
BorgWarner, Inc.		1,044		45,059
CarMax, Inc. (a) (b)		954		69,518
Carnival Corp., Class A		2,141		122,701
CBS Corp., Class B		1,820		102,320
Charter Communications, Inc., Class A (a) (b)		981		287,639
Chipotle Mexican Grill, Inc. (a)		130		56,078
Comcast Corp., Class A		24,443		801,975
D.R. Horton, Inc.		1,804		73,964
Darden Restaurants, Inc.		651		69,696
Discovery Communications, Inc., Class A (a) (b)		821		22,578
Discovery Communications, Inc., Class C (a) (b)		1,651		42,101
DISH Network Corp. (a) (b)		1,203		40,433
Dollar General Corp.		1,360		134,096
Dollar Tree, Inc. (a)		1,250		106,250
Expedia, Inc.		645		77,523
Foot Locker, Inc.		639		33,643
Ford Motor Co.		20,580		227,821
Garmin Ltd.		583		35,563
General Motors Co.		6,659		262,364
Genuine Parts Co.		774		71,045
H&R Block, Inc.		1,102		25,104
Hanesbrands, Inc. (b)		1,900		41,838
Harley-Davidson, Inc.		888		37,367
Hasbro, Inc.		596		55,017
Hilton Worldwide Holdings, Inc.		1,493		118,186
Kohl's Corp. (b)		886		64,589
L Brands, Inc.		1,295		47,760
Leggett & Platt, Inc. (b)		697		31,114
Lennar Corp., Class A		1,440		75,600
LKQ Corp. (a)		1,633		52,093
Lowe's Co., Inc.		4,377		418,310
Macy's, Inc.		1,607		60,150
Marriott International, Inc., Class A		1,583		200,408
Mattel, Inc. (b)		1,814		29,786

See notes to financial statements.

3

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
McDonald's Corp.		4,204	$	658,724
MGM Resorts International		2,688		78,033
Michael Kors Holdings Ltd. (a)		802		53,413
Mohawk Industries, Inc. (a)		334		71,566
Netflix, Inc. (a)		2,288		895,592
Newell Brands, Inc.		2,559		65,997
News Corp., Class A		2,020		31,310
News Corp., Class B		642		10,176
Nike, Inc., Class B		6,844		545,330
Nordstrom, Inc.		616		31,896
Norwegian Cruise Line Holdings Ltd. (a)		1,087		51,361
Omnicom Group, Inc. (b)		1,214		92,592
O'Reilly Automotive, Inc. (a)		441		120,644
PulteGroup, Inc.		1,390		39,963
PVH Corp.		406		60,786
Ralph Lauren Corp.		292		36,710
Ross Stores, Inc.		2,015		170,771
Royal Caribbean Cruises Ltd.		902		93,447
Starbucks Corp.		7,411		362,027
Tapestry, Inc.		1,502		70,158
Target Corp.		2,866		218,161
The Gap, Inc.		1,149		37,216
The Goodyear Tire & Rubber Co.		1,267		29,508
The Home Depot, Inc.		6,158		1,201,427
The Interpublic Group of Co., Inc.		2,027		47,513
The TJX Co., Inc.		3,334		317,330
The Walt Disney Co.		7,930		831,142
Tiffany & Co.		537		70,669
Tractor Supply Co. (b)		660		50,483
TripAdvisor, Inc. (a) (b)		572		31,866
Twenty-First Century Fox, Inc., Class A		5,558		276,177
Twenty-First Century Fox, Inc., Class B		2,316		114,109
Ulta Salon, Cosmetics & Fragrance, Inc. (a)		306		71,439
Under Armour, Inc., Class A (a)		977		21,963
Under Armour, Inc., Class C (a)		972		20,490
VF Corp.		1,736		141,519
Viacom, Inc., Class B		1,861		56,128
Whirlpool Corp.		340		49,718
Wynn Resorts Ltd.		446		74,634
Yum! Brands, Inc.		1,753		137,120
				15,779,649
Consumer Staples (7.3%):
Altria Group, Inc.		10,022		569,149
Archer-Daniels-Midland Co.		2,949		135,153
Brown-Forman Corp., Class B		1,379		67,585
Campbell Soup Co. (b)		1,015		41,148
Church & Dwight Co., Inc.		1,286		68,364
Colgate-Palmolive Co.		4,616		299,163
Conagra Brands, Inc.		2,113		75,497
Constellation Brands, Inc., Class A		904		197,858

See notes to financial statements.

4

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Costco Wholesale Corp.		2,316	$	483,998
Coty, Inc., Class A (b)		2,490		35,109
CVS Health Corp.		5,350		344,273
Dr Pepper Snapple Group, Inc.		948		115,656
General Mills, Inc.		3,001		132,824
Hormel Foods Corp. (b)		1,424		52,987
Kellogg Co.		1,313		91,739
Kimberly-Clark Corp.		1,849		194,774
McCormick & Co., Inc. (b)		639		74,182
Molson Coors Brewing Co., Class B		975		66,339
Mondelez International, Inc., Class A		7,843		321,562
Monster Beverage Corp. (a)		2,180		124,914
PepsiCo, Inc.		7,500		816,525
Philip Morris International, Inc.		8,190		661,261
Sysco Corp.		2,532		172,910
The Clorox Co. (b)		682		92,241
The Coca-Cola Co.		20,246		887,990
The Estee Lauder Cos., Inc., Class A (b)		1,184		168,945
The Hershey Co.		743		69,144
The J.M. Smucker Co. (b)		599		64,381
The Kraft Heinz Co.		3,150		197,883
The Kroger Co.		4,240		120,628
The Procter & Gamble Co.		13,294		1,037,729
Tyson Foods, Inc., Class A		1,569		108,026
Walgreens Boots Alliance, Inc.		4,493		269,647
Wal-Mart Stores, Inc. (b)		7,655		655,651
				8,815,235
Electronic Equipment, Instruments & Components (0.4%):
Amphenol Corp., Class A		1,611		140,399
Corning, Inc.		4,583		126,078
FLIR Systems, Inc.		733		38,094
IPG Photonics Corp. (a)		200		44,126
TE Connectivity Ltd.		1,852		166,791
				515,488
Energy (6.3%):
Anadarko Petroleum Corp.		2,718		199,094
Andeavor		746		97,860
Apache Corp. (b)		2,012		94,061
Baker Hughes, Inc.		2,228		73,591
Cabot Oil & Gas Corp.		2,430		57,834
Chevron Corp.		10,074		1,273,656
Cimarex Energy Co.		503		51,175
Concho Resources, Inc. (a)		786		108,743
ConocoPhillips		6,194		431,226
Devon Energy Corp.		2,774		121,945
EOG Resources, Inc.		3,051		379,636
EQT Corp.		1,291		71,237
Exxon Mobil Corp.		22,345		1,848,601
Halliburton Co.		4,601		207,321

See notes to financial statements.

5

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Helmerich & Payne, Inc.		574	$	36,598
Hess Corp.		1,412		94,449
HollyFrontier Corp.		932		63,777
Kinder Morgan, Inc.		10,005		176,788
Marathon Oil Corp.		4,481		93,474
Marathon Petroleum Corp.		2,502		175,540
National Oilwell Varco, Inc.		2,004		86,974
Newfield Exploration Co. (a)		1,053		31,853
Noble Energy, Inc.		2,596		91,587
Occidental Petroleum Corp.		4,035		337,649
ONEOK, Inc.		2,165		151,182
Phillips 66		2,214		248,654
Pioneer Natural Resources Co.		898		169,938
Schlumberger Ltd.		7,298		489,185
TechnipFMC PLC (b)		2,312		73,383
The Williams Cos., Inc.		4,363		118,281
Valero Energy Corp.		2,284		253,136
				7,708,428
Financials (13.6%):
Affiliated Managers Group, Inc.		287		42,668
Aflac, Inc.		4,110		176,812
American Express Co.		3,799		372,302
American International Group, Inc. (b)		4,741		251,367
Ameriprise Financial, Inc.		772		107,987
Aon PLC		1,298		178,047
Arthur J. Gallagher & Co.		957		62,473
Assurant, Inc.		277		28,667
Bank of America Corp.		50,452		1,422,241
BB&T Corp.		4,099		206,754
Berkshire Hathaway, Inc., Class B (a)		10,149		1,894,311
BlackRock, Inc., Class A		653		325,873
Brighthouse Financial, Inc. (a)		505		20,235
Capital One Financial Corp.		2,564		235,632
CBOE Holdings, Inc.		594		61,818
Chubb Ltd.		2,447		310,818
Cincinnati Financial Corp.		787		52,619
Citigroup, Inc.		13,553		906,967
Citizens Financial Group, Inc. (b)		2,570		99,973
CME Group, Inc.		1,795		294,236
Comerica, Inc.		911		82,828
Discover Financial Services		1,871		131,737
E*TRADE Financial Corp. (a)		1,404		85,869
Everest Re Group Ltd.		215		49,553
Fifth Third BanCorp		3,659		105,013
Franklin Resources, Inc. (b)		1,717		55,030
Hartford Financial Services Group, Inc.		1,883		96,278
Huntington Bancshares, Inc.		5,813		85,800
Intercontinental Exchange, Inc.		3,071		225,872
Invesco Ltd.		2,147		57,024
Jefferies Financial Group, Inc.		1,653		37,589

See notes to financial statements.

6

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
JPMorgan Chase & Co.		18,098	$	1,885,811
KeyCorp		5,593		109,287
Lincoln National Corp.		1,151		71,650
Loews Corp.		1,422		68,654
M&T Bank Corp.		792		134,759
Marsh & McLennan Co., Inc.		2,677		219,434
MetLife, Inc. (b)		5,467		238,361
Moody's Corp.		877		149,581
Morgan Stanley		7,276		344,882
MSCI, Inc.		474		78,414
Nasdaq, Inc.		615		56,131
Northern Trust Corp.		1,122		115,443
People's United Financial, Inc.		1,830		33,105
Principal Financial Group, Inc.		1,421		75,242
Prudential Financial, Inc.		2,225		208,060
Raymond James Financial, Inc.		683		61,026
Regions Financial Corp.		5,920		105,258
S&P Global, Inc.		1,339		273,009
State Street Corp.		1,939		180,502
SunTrust Banks, Inc.		2,470		163,069
SVB Financial Group (a)		279		80,564
Synchrony Financial		3,768		125,776
T. Rowe Price Group, Inc.		1,290		149,756
The Allstate Corp.		1,869		170,584
The Bank of New York Mellon Corp.		5,325		287,177
The Charles Schwab Corp.		6,319		322,901
The Goldman Sachs Group, Inc.		1,863		410,922
The PNC Financial Services Group, Inc.		2,487		335,994
The Progressive Corp.		3,071		181,650
The Travelers Co., Inc.		1,431		175,069
Torchmark Corp.		559		45,508
U.S. Bancorp		8,276		413,966
Unum Group		1,167		43,167
Wells Fargo & Co.		23,150		1,283,435
Willis Towers Watson PLC		697		105,665
XL Group Ltd.		1,355		75,812
Zions BanCorp (b)		1,036		54,587
				16,898,604
Health Care (13.5%):
Abbott Laboratories		9,179		559,827
AbbVie, Inc.		8,406		778,816
ABIOMED, Inc. (a)		222		90,809
Aetna, Inc.		1,724		316,354
Agilent Technologies, Inc.		1,702		105,252
Alexion Pharmaceuticals, Inc. (a)		1,169		145,131
Align Technology, Inc. (a)		380		130,013
Allergan PLC		1,742		290,426
AmerisourceBergen Corp.		857		73,076
Amgen, Inc. (b)		3,525		650,680
Anthem, Inc.		1,349		321,102

See notes to financial statements.

7

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Baxter International, Inc.		2,621	$	193,535
Becton, Dickinson & Co.		1,404		336,342
Biogen, Inc. (a)		1,116		323,908
Boston Scientific Corp. (a)		7,250		237,075
Bristol-Myers Squibb Co. (b)		8,609		476,422
Cardinal Health, Inc.		1,660		81,058
Celgene Corp. (a)		3,967		315,059
Centene Corp. (a)		938		115,571
Cerner Corp. (a)		1,666		99,610
Cigna Corp.		1,281		217,706
Danaher Corp.		3,237		319,427
DaVita, Inc. (a)		768		53,330
Dentsply Sirona, Inc. (b)		1,211		53,005
Edwards Lifesciences Corp. (a)		1,108		161,292
Eli Lilly & Co.		5,084		433,818
Envision Healthcare Corp. (a) (b)		638		28,078
Express Scripts Holding Co. (a)		2,976		229,777
Gilead Sciences, Inc.		6,908		489,363
HCA Holdings, Inc.		1,476		151,438
Henry Schein, Inc. (a) (b)		810		58,838
Hologic, Inc. (a) (b)		1,458		57,956
Humana, Inc.		726		216,079
IDEXX Laboratories, Inc. (a)		459		100,034
Illumina, Inc. (a)		775		216,450
Incyte Pharmaceuticals, Inc. (a)		926		62,042
Intuitive Surgical, Inc. (a)		592		283,260
IQVIA Holdings, Inc. (a)		769		76,762
Johnson & Johnson		14,148		1,716,718
Laboratory Corp. of America Holdings (a)		537		96,408
McKesson Corp.		1,088		145,139
Medtronic PLC		7,147		611,856
Merck & Co., Inc.		14,218		863,033
Mettler-Toledo International, Inc. (a)		134		77,536
Mylan NV (a)		2,715		98,120
Nektar Therapeutics (a)		839		40,968
PerkinElmer, Inc. (b)		583		42,693
Perrigo Co. PLC		691		50,381
Pfizer, Inc.		31,392		1,138,902
Quest Diagnostics, Inc.		715		78,607
Regeneron Pharmaceuticals, Inc. (a)		407		140,411
ResMed, Inc.		754		78,099
Stryker Corp.		1,699		286,893
The Cooper Co., Inc.		259		60,982
Thermo Fisher Scientific, Inc.		2,119		438,929
UnitedHealth Group, Inc.		5,103		1,251,971
Universal Health Services, Inc., Class B		459		51,151
Varian Medical Systems, Inc. (a)		481		54,699
Vertex Pharmaceuticals, Inc. (a)		1,339		227,576
Waters Corp. (a) (b)		415		80,340

See notes to financial statements.

8

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Zimmer Biomet Holdings, Inc.		1,071	$	119,352
Zoetis, Inc.		2,570		218,938
				16,818,423
Industrials (9.5%):
3M Co.		3,140		617,701
A.O. Smith Corp.		767		45,368
Alaska Air Group, Inc.		649		39,193
Allegion PLC (b)		502		38,835
American Airlines Group, Inc.		2,221		84,309
AMETEK, Inc.		1,220		88,035
Arconic, Inc.		2,240		38,102
C.H. Robinson Worldwide, Inc.		737		61,657
Caterpillar, Inc.		3,152		427,631
Cintas Corp.		455		84,207
CSX Corp.		4,679		298,427
Cummins, Inc.		821		109,193
Deere & Co.		1,707		238,639
Delta Air Lines, Inc.		3,430		169,923
Dover Corp.		814		59,585
Eaton Corp. PLC		2,321		173,472
Emerson Electric Co.		3,348		231,481
Equifax, Inc.		633		79,195
Expeditors International of Washington, Inc.		931		68,056
Fastenal Co. (b)		1,517		73,013
FedEx Corp.		1,300		295,178
Flowserve Corp.		690		27,876
Fluor Corp.		738		36,000
Fortive Corp.		1,615		124,533
Fortune Brands Home & Security, Inc.		801		43,006
General Dynamics Corp.		1,456		271,413
General Electric Co.		45,787		623,161
Honeywell International, Inc.		3,966		571,302
Huntington Ingalls Industries, Inc.		239		51,813
IHS Markit Ltd. (a)		1,909		98,486
Illinois Tool Works, Inc.		1,621		224,573
Ingersoll-Rand PLC		1,318		118,264
J.B. Hunt Transport Services, Inc.		451		54,819
Jacobs Engineering Group, Inc.		635		40,316
Johnson Controls International PLC (b)		4,884		163,370
Kansas City Southern		543		57,536
L3 Technologies, Inc.		413		79,428
Lockheed Martin Corp.		1,310		387,013
Masco Corp.		1,653		61,855
Nielsen Holdings PLC		1,768		54,684
Norfolk Southern Corp.		1,498		226,003
Northrop Grumman Corp.		918		282,469
PACCAR, Inc.		1,856		114,998
Parker-Hannifin Corp.		702		109,407
Pentair PLC (b)		874		36,778
Quanta Services, Inc. (a)		811		27,087

See notes to financial statements.

9

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Raytheon Co.		1,521	$	293,827
Republic Services, Inc., Class A		1,188		81,212
Robert Half International, Inc.		655		42,641
Rockwell Automation, Inc.		674		112,039
Rockwell Collins, Inc.		865		116,498
Roper Technologies, Inc.		542		149,543
Snap-on, Inc. (b)		299		48,055
Southwest Airlines Co.		2,852		145,110
Stanley Black & Decker, Inc.		809		107,443
Stericycle, Inc. (a) (b)		451		29,446
Textron, Inc.		1,380		90,956
The Boeing Co.		2,917		978,682
TransDigm Group, Inc. (b)		256		88,356
Union Pacific Corp.		4,151		588,114
United Continental Holdings, Inc. (a)		1,276		88,975
United Parcel Service, Inc., Class B		3,629		385,509
United Rentals, Inc. (a)		446		65,839
United Technologies Corp.		3,922		490,368
Verisk Analytics, Inc., Class A (a)		818		88,049
W.W. Grainger, Inc. (b)		269		82,959
Waste Management, Inc.		2,104		171,139
Xylem, Inc. (b)		949		63,944
				11,516,094
Internet Software & Services (5.3%):
Akamai Technologies, Inc. (a)		897		65,687
Alphabet, Inc., Class A (a)		1,574		1,777,345
Alphabet, Inc., Class C (a)		1,605		1,790,618
eBay, Inc. (a)		4,964		179,995
Facebook, Inc., Class A (a)		12,635		2,455,234
Twitter, Inc. (a)		3,408		148,827
VeriSign, Inc. (a)		446		61,289
				6,478,995
IT Services (4.6%):
Accenture PLC, Class A		3,252		531,994
Alliance Data Systems Corp.		254		59,233
Automatic Data Processing, Inc.		2,338		313,619
Broadridge Financial Solutions, Inc. (b)		622		71,592
Cognizant Technology Solutions Corp., Class A		3,101		244,948
DXC Technology Co.		1,504		121,237
Fidelity National Information Services, Inc.		1,746		185,128
Fiserv, Inc. (a)		2,179		161,442
FleetCor Technologies, Inc. (a)		474		99,848
Gartner, Inc. (a) (b)		479		63,659
Global Payments, Inc.		839		93,540
International Business Machines Corp.		4,518		631,165
Mastercard, Inc., Class A		4,868		956,660
Paychex, Inc.		1,686		115,238
PayPal Holdings, Inc. (a)		5,949		495,373
The Western Union Co. (b)		2,422		49,239

See notes to financial statements.

10

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Total System Services, Inc.		872	$	73,701
Visa, Inc., Class A (b)		9,506		1,259,071
				5,526,687
Materials (2.6%):
Air Products & Chemicals, Inc.		1,155		179,868
Albemarle Corp. (b)		583		54,994
Avery Dennison Corp.		464		47,374
Ball Corp.		1,846		65,625
CF Industries Holdings, Inc.		1,230		54,612
DowDuPont, Inc.		12,340		813,453
Eastman Chemical Co.		754		75,370
Ecolab, Inc.		1,371		192,392
FMC Corp.		708		63,161
Freeport-McMoRan, Inc.		7,101		122,563
International Flavors & Fragrances, Inc.		416		51,567
International Paper Co. (b)		2,178		113,431
Lyondellbasell Industries NV, Class A (b)		1,706		187,404
Martin Marietta Materials, Inc. (b)		331		73,922
Newmont Mining Corp.		2,813		106,078
Nucor Corp.		1,677		104,813
Packaging Corp. of America		498		55,671
PPG Industries, Inc.		1,342		139,206
Praxair, Inc.		1,514		239,439
Sealed Air Corp.		883		37,483
The Mosaic Co.		1,849		51,864
The Sherwin-Williams Co.		436		177,701
Vulcan Materials Co. (b)		699		90,213
WestRock Co.		1,345		76,693
				3,174,897
Real Estate (2.9%):
Alexandria Real Estate Equities, Inc. (b)		534		67,375
American Tower Corp.		2,325		335,195
Apartment Investment & Management Co., Class A		830		35,109
AvalonBay Communities, Inc.		728		125,136
Boston Properties, Inc.		814		102,092
CBRE Group, Inc., Class A (a)		1,593		76,050
Crown Castle International Corp.		2,187		235,802
Digital Realty Trust, Inc.		1,083		120,841
Duke Realty Investments, Inc.		1,883		54,663
Equinix, Inc.		418		179,694
Equity Residential		1,942		123,686
Essex Property Trust, Inc.		348		83,196
Extra Space Storage, Inc.		665		66,374
Federal Realty Investment Trust		386		48,848
Ggp US		3,331		68,052
HCP, Inc.		2,476		63,930
Host Hotels & Resorts, Inc.		3,871		81,562
Iron Mountain, Inc.		1,484		51,955
Kimco Realty Corp.		2,244		38,126

See notes to financial statements.

11

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Mid-America Apartment Communities, Inc.		599	$	60,301
Prologis, Inc.		2,811		184,655
Public Storage		790		179,219
Realty Income Corp. (b)		1,499		80,631
Regency Centers Corp.		784		48,671
SBA Communications Corp. (a)		614		101,384
Simon Property Group, Inc.		1,641		279,282
SL Green Realty Corp.		476		47,852
The Macerich Co.		572		32,507
UDR, Inc.		1,414		53,082
Ventas, Inc.		1,878		106,952
Vornado Realty Trust		912		67,415
Welltower, Inc.		1,953		122,434
Weyerhaeuser Co.		3,983		145,220
				3,467,291
Semiconductors & Semiconductor Equipment (4.0%):
Advanced Micro Devices, Inc. (a)		4,344		65,117
Analog Devices, Inc.		1,950		187,044
Applied Materials, Inc.		5,541		255,939
Broadcom, Inc.		2,165		525,316
Intel Corp.		24,680		1,226,843
KLA-Tencor Corp.		826		84,690
Lam Research Corp.		859		148,478
Microchip Technology, Inc. (b)		1,236		112,414
Micron Technology, Inc. (a)		6,098		319,779
Nvidia Corp.		3,190		755,711
Qorvo, Inc. (a)		667		53,473
QUALCOMM, Inc.		7,807		438,129
Skyworks Solutions, Inc.		962		92,977
Texas Instruments, Inc.		5,188		571,977
Xilinx, Inc.		1,344		87,709
				4,925,596
Software (5.9%):
Activision Blizzard, Inc.		4,001		305,356
Adobe Systems, Inc. (a)		2,592		631,956
ANSYS, Inc. (a)		442		76,988
Autodesk, Inc. (a)		1,162		152,327
CA, Inc.		1,649		58,787
Cadence Design Systems, Inc. (a)		1,492		64,619
Citrix Systems, Inc. (a) (b)		682		71,501
Electronic Arts, Inc. (a)		1,618		228,170
Intuit, Inc.		1,283		262,123
Microsoft Corp.		40,604		4,003,959
Oracle Corp.		15,936		702,140
Red Hat, Inc. (a)		933		125,367
Salesforce.com, Inc. (a)		3,650		497,860
Symantec Corp.		3,269		67,505
Synopsys, Inc. (a)		784		67,087
Take-Two Interactive Software, Inc. (a)		603		71,371
				7,387,116

See notes to financial statements.

12

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Technology Hardware, Storage & Peripherals (4.6%):
Apple, Inc.		26,757	$	4,952,989
Hewlett Packard Enterprises Co.		8,263		120,722
HP, Inc.		8,635		195,928
NetApp, Inc.		1,413		110,963
Seagate Technology PLC (b)		1,502		84,818
Western Digital Corp.		1,569		121,456
Xerox Corp.		1,128		27,072
				5,613,948
Telecommunication Services (2.0%):
AT&T, Inc.		38,288		1,229,428
CenturyLink, Inc.		5,130		95,623
Verizon Communications, Inc.		21,769		1,095,198
				2,420,249
Utilities (2.9%):
AES Corp.		3,483		46,707
Alliant Energy Corp.		1,220		51,630
Ameren Corp.		1,280		77,888
American Electric Power Co., Inc.		2,595		179,704
American Water Works Co., Inc.		942		80,428
CenterPoint Energy, Inc.		2,273		62,985
CMS Energy Corp. (b)		1,489		70,400
Consolidated Edison, Inc.		1,637		127,653
Dominion Resources, Inc.		3,436		234,266
DTE Energy Co.		946		98,034
Duke Energy Corp.		3,692		291,964
Edison International		1,718		108,698
Entergy Corp.		953		76,993
Evergy, Inc.		1,436		80,631
Eversource Energy		1,671		97,937
Exelon Corp.		5,089		216,791
FirstEnergy Corp.		2,358		84,676
NextEra Energy, Inc.		2,481		414,402
NiSource, Inc. (b)		1,779		46,752
NRG Energy, Inc.		1,591		48,844
PG&E Corp.		2,716		115,593
Pinnacle West Capital Corp.		590		47,530
PPL Corp. (b)		3,660		104,493
Public Service Enterprise Group, Inc.		2,662		144,121
SCANA Corp. (b)		752		28,967
Sempra Energy		1,346		156,284
The Southern Co. (b)		5,316		246,184
WEC Energy Group, Inc.		1,664		107,578
Xcel Energy, Inc.		2,679		122,377
				3,570,510
Total Common Stocks (Cost $40,160,874)				122,006,180

See notes to financial statements.

13

Victory Variable Insurance Funds
Victory S&P 500 Index VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Value
Collateral for Securities Loaned (4.4%)
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (c)		712,573	$	712,573
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (c)		647,816		647,816
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (c)		1,464,984		1,464,984
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (c)		323,870		323,870
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (c)		1,684,078		1,684,078
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (c)		582,966		582,966
Total Collateral for Securities Loaned (Cost $5,416,287)				5,416,287
Total Investments (Cost $45,577,161) — 103.6%				127,422,467
Liabilities in excess of other assets — (3.6)%				(4,382,333	)
NET ASSETS — 100.0%			$	123,040,134

(a)  Non-income producing security.

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

(c)  Rate disclosed is the daily yield on June 30, 2018.

PLC — Public Limited Company

Futures Contracts Purchased

	Number of Contracts		Expiration Date	Notional Amount		Value		Unrealized Appreciation (Depreciation)
E-Mini S&P 500 Futures		7	9/21/18	$	970,988	$	952,560	$	(18,428	)
	Total unrealized appreciation							$	—
	Total unrealized depreciation								(18,428	)
	Total net unrealized depreciation							$	(18,428	)

See notes to financial statements.

14

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory S&P 500 Index VIP Series
ASSETS:
Investments, at value (Cost $45,577,161)	$	127,422,467	(a)
Cash and cash equivalents		824,305
Deposits with broker for futures contracts		193,466
Interest and dividends receivable		102,866
Receivable for capital shares issued		10,511
Variation margin receivable on open futures contracts		735
Receivable from Adviser		8,536
Prepaid expenses		3,420
Total Assets		128,566,306
LIABILITIES:
Securities lending collateral		5,416,287
Payable for capital shares redeemed		32,038
Accrued expenses and other payables:
Investment advisory fees		25,746
Administration fees		6,282
Custodian fees		1,696
Transfer agent fees		88
Chief Compliance Officer fees		155
Trustees' fees		34
Other accrued expenses		43,846
Total Liabilities		5,526,172
NET ASSETS:
Capital		32,404,244
Accumulated net investment income (loss)		1,040,345
Accumulated net realized gains (losses) from investments		7,768,667
Net unrealized appreciation (depreciation) on investments		81,826,878
Net Assets	$	123,040,134
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		6,300,085
Net asset value:	$	19.53

(a)  Includes $6,472,099 of securities on loan.

See notes to financial statements.

15

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory S&P 500 Index VIP Series
Investment Income:
Dividend income	$	1,207,501
Interest income		4,741
Securities lending income		4,934
Total Income		1,217,176
Expenses:
Investment advisory fees		157,909
Administration fees		37,078
Custodian fees		3,504
Transfer agent fees		254
Trustees' fees		5,114
Chief Compliance Officer fees		549
Legal and audit fees		15,121
Interest expense on interfund lending (See Note 6)		19
Other expenses		21,934
Total Expenses		241,482
Expenses waived/reimbursed by Adviser		(64,651	)
Net Expenses		176,831
Net Investment Income (Loss)		1,040,345
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions		5,321,833
Net realized gains (losses) from futures transactions		54,773
Net change in unrealized appreciation/depreciation on investments		(3,197,245	)
Net change in unrealized appreciation/depreciation on futures transactions		(35,970	)
Net realized/unrealized gains (losses) on investments		2,143,391
Change in net assets resulting from operations	$	3,183,736

See notes to financial statements.

16

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory S&P 500 Index VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	1,040,345		$	2,136,011
Net realized gains (losses) from investment transactions		5,376,606			8,589,741
Net change in unrealized appreciation/depreciation on investments		(3,233,215	)		13,782,820
Change in net assets resulting from operations		3,183,736			24,508,572
Distributions to Shareholders:
From net investment income		—			(2,216,230	)
From net realized gains		—			(272,843	)
Change in net assets resulting from distributions to shareholders		—			(2,489,073	)
Change in net assets resulting from capital transactions		(9,224,442	)		(13,095,982	)
Change in net assets		(6,040,706	)		8,923,517
Net Assets:
Beginning of period		129,080,840			120,157,323
End of period	$	123,040,134		$	129,080,840
Accumulated net investment income (loss)	$	1,040,345		$	—
Capital Transactions:
Proceeds from shares issued	$	2,071,052		$	7,683,257
Distributions reinvested		—			2,489,073
Cost of shares redeemed		(11,295,494	)		(23,268,312	)
Change in net assets resulting from capital transactions	$	(9,224,442	)	$	(13,095,982	)
Share Transactions:
Issued		106,321			440,557
Reinvested		—			130,083
Redeemed		(580,188	)		(1,316,648	)
Change in Shares		(473,867	)		(746,008	)

See notes to financial statements.

17

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory S&P 500 Index VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	19.06		$	15.98		$	14.84		$	14.97		$	13.43		$	10.35
Investment Activities:
Net investment income (loss)		0.16	(a)		0.30	(a)		0.28	(a)		0.27	(a)		0.24	(a)		0.23
Net realized and unrealized gains (losses) on investments		0.31			3.15			1.46			(0.12	)		1.56			3.08
Total from Investment Activities		0.47			3.45			1.74			0.15			1.80			3.31
Distributions to Shareholders:
Net investment income		—			(0.33	)		(0.32	)		(0.28	)		(0.26	)		(0.23	)
Net realized gains from investments		—			(0.04	)		(0.28	)		—			—			—
Total Distributions to Shareholders		—			(0.37	)		(0.60	)		(0.28	)		(0.26	)		(0.23	)
Capital Contributions from Prior Custodian, Net (See Note 8)		—			—			—	(b)		—			—			—
Net Asset Value, End of Period	$	19.53		$	19.06		$	15.98		$	14.84		$	14.97		$	13.43
Total Return (c) (d)		2.47	%		21.60	%		11.75	%(e)		1.03	%		13.42	%		32.01	%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	123,040		$	129,081		$	120,157		$	118,752		$	129,723		$	133,040
Ratio of net expenses to average net assets (f)		0.28	%		0.28	%		0.28	%		0.28	%		0.28	%		0.28	%
Ratio of net investment income (loss) to average net assets (f)		1.65	%		1.70	%		1.84	%		1.75	%		1.73	%		1.80	%
Ratio of gross expenses to average net assets (f) (g)		0.38	%		0.41	%		0.37	%		0.39	%		0.37	%		0.36	%
Portfolio turnover (d)		1	%		3	%		4	%		3	%		3	%		2	%

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

(b)  Amount is less than $0.005 per share.

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

(d)  Not annualized for periods less than one year.

(e)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was less than 0.01% for the period shown. (See Note 8)

(f)  Annualized for periods less than one year.

(g)  During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratios would have been as indicated.

See notes to financial statements.

18

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory S&P 500 Index VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to track the investment performance of the Standard & Poor's 500 Composite Stock Price Index ("S&P 500"), which emphasizes securities issued by large U.S. companies.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the NASDAQ

19

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	LEVEL 1 — Quoted Prices					Total
	Investments in Securities		Other Financial Investments^			Investments in Securities		Other Financial Investments^
Common Stocks	$	122,006,180	$	—		$	122,006,180	$	—
Collateral for Securities Loaned		5,416,287		—			5,416,287		—
Futures Contracts		—		(18,428	)		—		(18,428	)
Total	$	127,422,467	$	(18,428	)	$	127,422,467	$	(18,428	)

^  Other Financial instruments include any derivative instruments not reflected in the Schedule of Portfolio Investments as Investment Securities, such as futures contracts, forward contracts and swap agreements. These instruments are generally recorded in the financial statements at the unrealized gain or loss on the investment.

There were no transfers among any levels during the six months ended June 30, 2018.

Investment Companies:

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

20

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Derivative Instruments:

Futures Contracts:

The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Funds is presented on the Statements of Assets and Liabilities under Deposit with broker for futures contracts.

Summary of Derivative Instruments:

The following table summarizes the fair values of derivative instruments on the Statement of Assets and Liabilities, categorized by risk exposure, as of June 30, 2018:

	Assets
	Variation Margin Receivable on Open Futures Contracts*
Equity Risk Exposure	$	(18,428	)

*  Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilities.

The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the six months ended June 30, 2018

	Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations		Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result of Operations
	Net Realized Gains (Losses) from Futures Transactions		Net Change in Unrealized Appreciation/Depreciation on Futures Transactions
Equity Risk Exposure	$	54,773	$	(35,970	)

21

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The notional amount of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted on the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund.

The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with cash collateral of overnight and continuous maturities and non-cash collateral of greater than 90 days maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Value of Non-Cash Collateral Received		Net Amount
$	6,472,099	$	5,416,287	$	1,210,430	$	154,618

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases		Sales
$	1,393,821	$	9,181,682

For the six months ended June 30, 2018, there were no purchases or sales of U.S. Government Securities.

4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.25% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 0.28%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2019		Expires 12/31/2020		Expires 12/31/2021
$	36,542	$	167,384	$	64,651

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date of July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

Interfund Lending:

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

25

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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The average loans for the days outstanding and average interest rate for the Fund during the six months ended June 30, 2018 was as follows:

Borrower or Lender	Amount Outstanding at June 30, 2018		Average Borrowing		Days Borrowing Outstanding		Average Interest Rate			Interest Paid
Borrower	$	—	$	341,000		1		2.00	%	$	19

*For the six months ended June 30, 2018, based on the number of days borrowings were outstanding.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

		Year Ended December 31, 2017
		Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	2,216,230	$	272,843	$	2,489,073

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Unrealized Appreciation (Depreciation)*		Total Accumulated Earnings (Deficit)
$	191,351	$	7,113,062	$	7,304,413	$	80,147,741	$	87,452,154

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

During the most recent tax year ended December 31, 2017, the Fund did not utilize any capital loss carryforwards.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	50,203,221	$	83,066,909	$	(5,866,091	)	$	77,200,818

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in

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Victory Variable Insurance Funds Notes to Financial Statements — continued
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  (Unaudited)

place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
GIAC		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

27

Victory Variable Insurance Funds Supplemental Information
June 30, 2018

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Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016- December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

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Victory Variable Insurance Funds Supplemental Information — continued
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Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011- 2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013).	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

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Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

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Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,024.70	$	1.41		0.28	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help

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Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

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you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,023.41	$	1.40		0.28	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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June 30, 2018

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Portfolio Holdings:

(As a Percentage of Total Investments)

33

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-SPIVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Victory Sophus Emerging Markets VIP Series

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	3
Statement of Assets and Liabilities	10
Statement of Operations	11
Statements of Changes in Net Assets	12
Financial Highlights	13
Notes to Financial Statements	14
Supplemental Information
Trustee and Officer Information	23
Proxy Voting and Form N-Q Information	26
Expense Examples	26
Portfolio Holdings	28
Privacy Policy (inside back cover)

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

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

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

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

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Victory Variable Insurance Funds
Victory Sophus Emerging Markets VIP Series Schedule of Portfolio Investments
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Common Stocks (99.1%)
Argentina (0.7%):
Financials (0.4%):
Banco Macro SA, ADR		3,078	$	180,956
Utilities (0.3%):
Pampa Energia SA, ADR (b)		4,991		178,528
				359,484
Austria (0.5%):
Financials (0.5%):
Erste Group Bank AG		6,950		289,721
Brazil (4.3%):
Financials (1.0%):
Banco Bradesco SA, ADR		35,385		242,741
Banco BTG Pactual SA		67,600		322,736
				565,477
Materials (2.2%):
Suzano Papel e Celulose SA		31,100		360,921
Vale SA, ADR (c)		63,036		808,121
				1,169,042
Telecommunication Services (0.4%):
TIM Participacoes SA		67,400		229,247
Utilities (0.7%):
Energisa SA		15,500		117,000
Engie Brasil Energia SA		32,500		287,090
				404,090
				2,367,856
Chile (0.4%):
Energy (0.4%):
Geopark Ltd. (b)		10,671		220,249
China (28.5%):
Consumer Discretionary (1.1%):
JNBY Design Ltd.		106,000		242,180
Tianneng Power International Ltd.		234,000		363,235
				605,415
Consumer Staples (1.7%):
Ausnutria Dairy Corp. Ltd. (c)		184,000		200,152
Chlitina Holding Ltd.		31,000		301,478
Want Want China Holdings Ltd.		480,000		426,840
				928,470

See notes to financial statements.

3

Victory Variable Insurance Funds
Victory Sophus Emerging Markets VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Energy (2.0%):
China Petroleum & Chemical Corp., Class H		610,000	$	546,036
PetroChina Co. Ltd.		716,000		545,473
				1,091,509
Financials (6.5%):
China Construction Bank Corp.		1,550,638		1,418,934
Industrial & Commercial Bank of China Ltd.		1,147,000		855,501
Ping An Insurance Group Co. of China Ltd.		136,500		1,250,054
				3,524,489
Health Care (0.4%):
3SBio, Inc. (d)		94,000		212,414
Industrials (0.6%):
Lonking Holdings Ltd.		695,000		318,302
Information Technology (15.0%):
AAC Technologies Holdings, Inc. (c)		23,000		323,003
Alibaba Group Holding Ltd., ADR (b) (c)		14,546		2,698,719
Baidu, Inc., ADR (b)		5,063		1,230,309
Chinasoft International Ltd.		346,000		269,036
Tencent Holdings Ltd.		63,530		3,190,266
Weibo Corp., ADR (b) (c)		2,929		259,978
YY, Inc., ADR (b)		2,285		229,574
				8,200,885
Materials (0.5%):
Anhui Conch Cement Co. Ltd.		52,000		296,558
Real Estate (0.7%):
China Sce Property Holdings		788,000		372,367
				15,550,409
Colombia (0.6%):
Financials (0.6%):
Banco Davivienda SA		27,863		351,944
Cyprus (0.6%):
Industrials (0.6%):
Global Trans, Registered Shares, GDR		30,366		309,611
Hong Kong (6.1%):
Consumer Discretionary (3.6%):
China Maple Leaf Educational Systems Ltd.		206,000		369,928
Haier Electronics Group Co. Ltd.		130,000		443,535
Melco International Development Ltd.		124,000		380,392
Shangri-La Asia Ltd.		184,000		344,718
Xinyi Glass Holdings Ltd.		336,000		407,560
				1,946,133
Health Care (1.0%):
Sino Biopharmaceutical Ltd.		352,500		538,354

See notes to financial statements.

4

Victory Variable Insurance Funds
Victory Sophus Emerging Markets VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Materials (0.5%):
Nine Dragons Paper Holdings Ltd.		238,000	$	301,984
Real Estate (1.0%):
Shimao Property Holdings Ltd.		215,500		561,866
				3,348,337
Hungary (0.7%):
Financials (0.7%):
OTP Bank Public Co. Ltd.		9,984		361,251
India (8.0%):
Consumer Discretionary (1.3%):
Apollo Tyres Ltd.		57,044		212,219
Mahindra & Mahindra Ltd.		40,163		526,386
				738,605
Energy (0.6%):
Indian Oil Corp. Ltd.		135,682		309,918
Financials (2.3%):
Edelweiss Financial Services Ltd.		85,406		367,053
Shriram Transport Finance Co. Ltd.		14,240		270,250
Yes Bank Ltd.		122,905		610,764
				1,248,067
Health Care (0.9%):
Cipla Ltd.		55,584		499,331
Industrials (1.2%):
Larsen & Toubro Ltd.		35,269		656,689
Information Technology (0.6%):
HCL Technologies Ltd.		24,376		329,395
Real Estate (0.4%):
Sobha Ltd.		33,964		219,017
Utilities (0.7%):
Power Grid Corp. of India Ltd.		142,786		389,602
				4,390,624
Indonesia (2.6%):
Consumer Discretionary (0.6%):
PT Sri Rejeki Isman TBK		13,367,300		320,471
Energy (0.8%):
PT United Tractors TBK		202,600		446,263
Financials (0.9%):
PT Bank Negara Indonesia Persero TBK		502,600		247,044
PT Bank Tabungan Negara Persero TBK		1,364,400		232,938
				479,982
Materials (0.3%):
PT Indah Kiat Pulp & Paper Corp. TBK (b)		149,500		193,927
				1,440,643

See notes to financial statements.

5

Victory Variable Insurance Funds
Victory Sophus Emerging Markets VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Korea, Republic Of (15.0%):
Consumer Discretionary (2.1%):
LG Electronics, Inc.		5,669	$	422,125
Lotte Himart Co. Ltd.		7,714		545,921
Modetour Network, Inc.		7,458		181,910
				1,149,956
Consumer Staples (0.9%):
Orion Corp.		3,658		488,440
Energy (1.2%):
SK Innovation Co. Ltd.		3,660		662,989
Financials (2.1%):
KB Financial Group, Inc.		13,225		622,580
Korea Investment Holdings Co. Ltd.		6,676		503,413
				1,125,993
Industrials (0.4%):
Doosan Infracore Co. Ltd. (b)		27,827		241,053
Information Technology (5.2%):
Samsung Electronics Co. Ltd.		45,199		1,893,537
SK Hynix, Inc.		12,001		921,271
				2,814,808
Materials (3.1%):
LG Chem Ltd.		1,606		480,733
Lotte Fine Chemical Co. Ltd.		5,288		308,223
POSCO, ADR		7,060		523,287
SKCKOLONPI, Inc.		8,149		361,542
				1,673,785
				8,157,024
Luxembourg (1.0%):
Materials (1.0%):
Ternium SA, ADR		16,101		560,637
Malaysia (1.2%):
Financials (0.7%):
CIMB Group Holdings Berhad		283,400		382,232
Industrials (0.5%):
Malaysia Airports Holdings Berhad		136,700		297,909
				680,141
Mexico (1.8%):
Financials (0.8%):
Banco del Bajio SA (d)		205,945		428,786
Industrials (0.4%):
Promotora y Operadora de Infraestructura SAB de CV		25,313		226,212

See notes to financial statements.

6

Victory Variable Insurance Funds
Victory Sophus Emerging Markets VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Materials (0.6%):
Grupo Cementos de Chihuahua SAB de CV		47,766	$	309,972
				964,970
Philippines (0.7%):
Consumer Discretionary (0.7%):
Bloomberry Resorts Corp.		2,223,600		406,052
Poland (0.5%):
Financials (0.5%):
Bank Pekao SA		8,876		267,302
Russian Federation (3.8%):
Energy (2.0%):
LUKOIL PJSC, ADR		15,889		1,090,784
Financials (1.2%):
Sberbank of Russia PJSC, ADR		46,893		672,828
Utilities (0.6%):
Inter RAO UES PJSC		4,522,000		296,434
				2,060,046
South Africa (6.2%):
Consumer Discretionary (2.6%):
Naspers Ltd.		5,567		1,404,453
Consumer Staples (0.4%):
Astral Foods Ltd.		10,965		228,342
Financials (1.7%):
Barclays Africa Group Ltd.		46,242		537,242
Capitec Bank Holdings Ltd.		6,009		378,785
				916,027
Industrials (0.7%):
KAP Industrial Holdings Ltd.		696,788		379,319
Materials (0.8%):
Mondi Ltd.		7,445		201,770
PPC Ltd. (b)		454,160		240,074
				441,844
				3,369,985
Taiwan (10.3%):
Consumer Staples (0.5%):
TCI Co. Ltd.		17,265		266,107
Financials (2.3%):
Cathay Financial Holding Co. Ltd.		414,000		729,376
CTBC Financial Holding Co. Ltd.		726,000		521,755
				1,251,131

See notes to financial statements.

7

Victory Variable Insurance Funds
Victory Sophus Emerging Markets VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
Information Technology (6.5%):
ASPEED Technology, Inc.		18,000	$	471,369
Globalwafers Co. Ltd.		12,000		198,714
Largan Precision Co. Ltd.		2,000		293,878
MediaTek, Inc.		63,000		618,546
Taiwan Semiconductor Manufacturing Co. Ltd.		239,259		1,699,359
Win Semiconductors Corp.		35,000		250,675
				3,532,541
Telecommunication Services (1.0%):
Far EasTone Telecommunications Co. Ltd.		219,000		565,834
				5,615,613
Thailand (1.8%):
Energy (0.5%):
Banpu PCL		431,400		253,824
Materials (0.4%):
Indorama Ventures		140,800		232,559
Real Estate (0.9%):
Quality Houses PCL, Series F		5,269,000		489,239
				975,622
Turkey (1.8%):
Consumer Discretionary (0.4%):
Yatas Yatak ve Yorgan Sanayi ve Ticaret AS (b)		49,873		231,503
Financials (0.8%):
Turkiye Garanti Bankasi AS		223,461		407,898
Industrials (0.3%):
Pegasus Hava Tasimaciligi AS (b)		31,996		171,830
Materials (0.3%):
Anadolu CAM Sanayii AS		271,619		170,343
				981,574
United Arab Emirates (0.7%):
Financials (0.7%):
National Bank of Abu Dhabi PJSC		107,518		355,863
United Kingdom (1.3%):
Materials (1.3%):
Anglo American PLC		31,943		709,032
Total Common Stocks (Cost $46,999,796)				54,093,990
Collateral for Securities Loaned (5.9%)
United States (5.9%):
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (e)		422,864		422,864
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (e)		384,436		384,436
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (e)		869,370		869,371
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (e)		192,195		192,195

See notes to financial statements.

8

Victory Variable Insurance Funds
Victory Sophus Emerging Markets VIP Series Schedule of Portfolio Investments — continued
June 30, 2018

  (Unaudited)

Security Description	Shares		Fair Value(a)
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (e)		999,388	$	999,389
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (e)		345,952		345,952
Total Collateral for Securities Loaned (Cost $3,214,206)				3,214,207
Total Investments (Cost $50,214,003) — 105.0%				57,308,197
Liabilities in excess of other assets — (5.0)%				(2,743,569	)
NET ASSETS — 100.0%			$	54,564,628

(a)  All securities, except those traded on exchanges in the United States (including ADRs), Argentina, Brazil, Chile, Luxembourg, Mexico and Colombia were fair valued at June 30, 2018. See Note 2 for further information.

(b)  Non-income producing security.

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

(d)  Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2018, the fair value of these securities was $641,200 and amounted to 1.2% of net assets.

(e)  Rate disclosed is the daily yield on June 30, 2018.

ADR — American Depositary Receipt

GDR — Global Depository Receipt

PCL — Public Company Limited

PLC — Public Limited Company

See notes to financial statements.

9

Victory Variable Insurance Funds Statement of Assets and Liabilities
June 30, 2018

  (Unaudited)

	Victory Sophus Emerging Markets VIP Series
ASSETS:
Investments, at value (Cost $50,214,003)	$	57,308,197	(a)
Foreign currency, at value (Cost $32,018)		32,040
Cash and cash equivalents		118,045
Unrealized appreciation on foreign currency spot contracts		432
Interest and dividends receivable		285,049
Receivable for capital shares issued		189
Receivable for investments sold		772,068
Reclaims receivable		542
Prepaid expenses		1,709
Total Assets		58,518,271
LIABILITIES:
Securities lending collateral		3,214,207
Accrued foreign capital gains taxes		4,504
Payable for investments purchased		628,858
Payable for capital shares redeemed		27,657
Accrued expenses and other payables:
Investment advisory fees		47,403
Administration fees		2,892
Custodian fees		9,251
Transfer agent fees		83
Chief Compliance Officer fees		69
Other accrued expenses		18,719
Total Liabilities		3,953,643
NET ASSETS:
Capital		37,497,764
Accumulated net investment income (loss)		749,146
Accumulated net realized gains (losses) from investments		9,229,713
Net unrealized appreciation (depreciation) on investments		7,088,005
Net Assets	$	54,564,628
Shares (unlimited number of shares authorized with a par value of $0.001 per share):		3,042,648
Net asset value:	$	17.93

(a)  Includes $3,100,925 of securities on loan.

See notes to financial statements.

10

Victory Variable Insurance Funds Statement of Operations
For the Six Months Ended June 30, 2018

  (Unaudited)

	Victory Sophus Emerging Markets VIP Series
Investment Income:
Dividend income	$	786,096
Interest income		1,550
Securities lending income		6,717
Foreign tax withholding		(85,702	)
Total Income		708,661
Expenses:
Investment advisory fees		312,500
Administration fees		18,442
Custodian fees		29,691
Transfer agent fees		205
Trustees' fees		2,548
Chief Compliance Officer fees		272
Legal and audit fees		14,519
Interest expense on interfund lending (See Note 6)		9
Other expenses		18,417
Total Expenses		396,603
Net Investment Income (Loss)		312,058
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions and foreign currency translations		5,239,843
Net realized gains (losses) from foreign capital gains taxes		(53,558	)
Net change in unrealized appreciation/depreciation on investments and foreign currency translations		(7,955,526	)
Net change in unrealized appreciation/depreciation on foreign capital gains taxes		29,947
Net realized/unrealized gains (losses) on investments		(2,739,294	)
Change in net assets resulting from operations	$	(2,427,236	)

See notes to financial statements.

11

Victory Variable Insurance Funds Statements of Changes in Net Assets

	Victory Sophus Emerging Markets VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	312,058		$	589,559
Net realized gains (losses) from investment transactions		5,186,285			9,014,684
Net change in unrealized appreciation/depreciation on investments		(7,925,579	)		10,215,009
Change in net assets resulting from operations		(2,427,236	)		19,819,252
Distributions to Shareholders:
From net investment income		—			(505,562	)
Change in net assets resulting from distributions to shareholders		—			(505,562	)
Change in net assets resulting from capital transactions		(5,557,653	)		(5,398,302	)
Change in net assets		(7,984,889	)		13,915,388
Net Assets:
Beginning of period		62,549,517			48,634,129
End of period	$	54,564,628		$	62,549,517
Accumulated net investment income (loss)	$	749,146		$	437,088
Capital Transactions:
Proceeds from shares issued	$	2,641,694		$	4,463,681
Distributions reinvested		—			505,562
Cost of shares redeemed		(8,199,347	)		(10,367,545	)
Change in net assets resulting from capital transactions	$	(5,557,653	)	$	(5,398,302	)
Share Transactions:
Issued		133,902			271,586
Reinvested		—			27,283
Redeemed		(419,911	)		(637,452	)
Change in Shares		(286,009	)		(338,583	)

See notes to financial statements.

12

Victory Variable Insurance Funds Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory Sophus Emerging Markets VIP Series
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	18.79		$	13.26		$	11.99		$	13.81		$	14.79		$	18.02
Investment Activities:
Net investment income (loss)		0.10	(a)		0.17	(a)		0.12	(a)		0.13	(a)		0.14			0.14
Net realized and unrealized gains (losses) on investments		(0.96	)		5.51			1.14			(1.89	)		(0.70	)		(0.94	)
Total from Investment Activities		(0.86	)		5.68			1.26			(1.76	)		(0.56	)		(0.80	)
Distributions to Shareholders:
Net investment income		—			(0.15	)		(0.12	)		(0.06	)		(0.15	)		(0.04	)
Net realized gains from investments		—			—			—			—			(0.27	)		(2.51	)
Total Distributions to Shareholders		—			(0.15	)		(0.12	)		(0.06	)		(0.42	)		(2.55	)
Increase from Contribution by Adviser		—			—			—			—			—			0.12
Capital Contributions from Prior Custodian, Net (See Note 8)		—			—			0.13			—			—			—
Net Asset Value, End of Period	$	17.93		$	18.79		$	13.26		$	11.99		$	13.81		$	14.79
Total Return (b) (c)		(4.58	)%		42.88	%		11.57	%(d)		(12.74	)%		(3.71	)%		(3.47	)%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	54,565		$	62,550		$	48,634		$	48,426		$	62,782		$	74,908
Ratio of net expenses to average net assets (e)		1.27	%		1.33	%		1.34	%		1.35	%		1.35	%		1.33	%
Ratio of net investment income (loss) to average net assets (e)		1.00	%		1.03	%		0.98	%		0.92	%		0.94	%		0.91	%
Ratio of gross expenses to average net assets (e) (f)		1.27	%		1.33	%		1.35	%		1.35	%		1.35	%		1.33	%
Portfolio turnover (c)		41	%		99	%		102	%		123	%		135	%		248	%

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

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

(c)  Not annualized for periods less than one year.

(d)  The Fund received monies related to a nonrecurring refund from the prior Custodian. The corresponding impact to the total return was 0.95% for the period shown. (See Note 8)

(e)  Annualized for periods less than one year.

(f)  During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratios would have been as indicated.

See notes to financial statements.

13

Victory Variable Insurance Funds Notes to Financial Statements
June 30, 2018

  (Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory Sophus Emerging Markets VIP Series (the "Fund"). The Fund offers a single class of shares: Class I Shares. Sales of shares of the Fund may only be made to certain separate accounts of The Guardian Insurance & Annuity Company, Inc. ("GIAC") that fund certain variable annuity and variable life insurance contracts issued by GIAC. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America ("Guardian Life"). The Fund seeks to provide long-term capital appreciation.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

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

14

Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

  (Unaudited)

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

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

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments:

	LEVEL 1 — Quoted Prices		LEVEL 2 — Other Significant Observable Inputs		Total
	Investments in Securities		Investments in Securities		Investments in Securities
Victory Sophus Emerging Markets VIP Series
Common Stocks	$	11,074,111	$	43,019,880	$	54,093,991
Collateral for Securities Loaned		3,214,206		—		3,214,206
Total	$	14,288,317	$	43,019,880	$	57,308,197

There were no transfers among any levels during the six months ended June 30, 2018.

Investment Companies:

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

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted in the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund. The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018:

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	3,100,925	$	3,214,207	$	113,282

Foreign Currency Translations:

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

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Victory Variable Insurance Funds Notes to Financial Statements — continued
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Foreign Taxes:

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

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.  Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows:

Purchases		Sales
$	25,387,999	$	30,542,090

For the six months ended June 30, 2018, there were no purchases or sales of U.S. Government Securities.

4.  Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

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Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 1.00% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2019. Under the terms of the agreement, to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund, such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limitation agreement. As of June 30, 2018, the expense limit (excluding voluntary waivers) is 1.35%.

The Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. As of June 30, 2018, the following amounts are available to be repaid to the Adviser. Amounts repaid to the Adviser during the six months ended June 30, 2018, if any, are reflected on the Statement of Operations as "Recoupment of prior expenses waived/reimbursed by Adviser".

Expires 12/31/2019
$	8,198

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.  Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to foreign securities risk. Foreign securities are (including ADRs and other depository receipts) are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

The Fund will be subject to emerging market risk. Risk of investment in emerging markets include greater political and economic instability, greater volatility in currency exchange rates, less developed securities markets, possible trade barriers, currency transfer restrictions, a more limited number of potential buyers and issuers, an emerging market country's dependence on revenue from particular commodities or international aid, less governmental supervision and regulation, unavailability of currency hedging techniques, differences in auditing and financial reporting standards and less developed legal systems.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

6.  Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date on July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100 million for providing the

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

Interfund Lending:

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

The average loans for the days outstanding and average interest rate for the Fund during the six months ended June 30, 2018 was as follows:

Fund	Borrower or Lender	Amount Outstanding at June 30, 2018		Average Borrowing*		Days Borrowing Outstanding		Average Interest Rate			Interest Paid
Sophus Emerging Markets VIP Series	Borrower	$	—	$	132,000		1		2.35	%	$	9

*  For the six months ended June 30, 2018, based on the number of days borrowings were outstanding.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid):

Year Ended December 31, 2017
Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	505,562	$	—	$	505,562

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Unrealized Appreciation (Depreciation)*		Total Accumulated Earnings (Deficit)
$	437,088	$	4,140,978	$	4,578,066	$	14,916,034	$	19,494,100

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

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Victory Variable Insurance Funds Notes to Financial Statements — continued
June 30, 2018

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During the most recent tax year ended December 31, 2017, the Fund utilized $4,953,197 in capital loss carryforwards that were not subject to expiration.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows:

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	50,317,634	$	10,207,169	$	(3,216,606	)	$	6,990,563

8.  Capital Contribution from Prior Custodian:

The Fund received notification from the Fund's prior custodian, State Street Bank and Trust ("State Street"), related to over-billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.

State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the over-billing, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.

The portion of the refund retained by the Fund was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".

9.  Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
GIAC		100.0	%

10.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

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Victory Variable Insurance Funds Notes to Financial Statements — continued
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11.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

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Victory Variable Insurance Funds Supplemental Information
June 30, 2018

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Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016-December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).

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Victory Variable Insurance Funds Supplemental Information — continued
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Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011-2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013)	None.

*  The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

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Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

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Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	954.20	$	6.15		1.27	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,018.50	$	6.36		1.27	%

*  Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

27

Victory Variable Insurance Funds Supplemental Information — continued
June 30, 2018

  (Unaudited)

Portfolio Holdings:

(As a Percentage of Total Investments)

28

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

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

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

VVIF-RS-SEMVIP-SAR (6/18)

June 30, 2018

Semi Annual Report

Victory Variable Insurance Funds

Diversified Stock Fund

www.vcm.com

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

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

•  Detailed performance records

•  Daily share prices

•  The latest fund news

•  Investment resources to help you become a better investor

•  A section dedicated to investment professionals

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

Victory Variable Insurance Funds

Table of Contents

Financial Statements
Schedule of Portfolio Investments	2
Statement of Assets and Liabilities	5
Statement of Operations	6
Statements of Changes in Net Assets	7
Financial Highlights	8
Notes to Financial Statements	9
Supplemental Information
Trustee and Officer Information	15
Proxy Voting and Form N-Q Information	17
Expense Examples	17
Portfolio Holdings	18
Privacy Policy (inside back cover)

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

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Victory Variable Insurance Diversified Stock Fund.

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

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

Call Victory at:

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

Visit our website at:

www.vcm.com

1

Victory Variable Insurance Funds  Schedule of Portfolio Investments

Victory Variable Insurance Diversified Stock Fund  June 30, 2018

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description	Shares		Value
Common Stocks (97.2%):
Consumer Discretionary (17.4%):
Amazon.com, Inc. (a)		495	$	841
Burlington Stores, Inc. (a)		2,548		384
Comcast Corp., Class A		10,182		334
D.R. Horton, Inc.		11,414		468
Dollar General Corp.		5,244		517
Lear Corp.		2,751		511
LGI Homes, Inc. (a) (b)		3,419		197
Magna International, Inc., ADR		6,417		373
Meritage Homes Corp. (a)		4,616		203
O'Reilly Automotive, Inc. (a)		1,281		350
PulteGroup, Inc.		16,055		462
Ross Stores, Inc.		6,135		520
The Home Depot, Inc. (b)		1,123		219
The TJX Co., Inc.		1,944		185
Toll Brothers, Inc.		10,291		381
				5,945
Consumer Staples (3.9%):
Costco Wholesale Corp.		1,400		293
CVS Health Corp.		6,810		438
Sysco Corp. (b)		2,672		182
Wal-Mart Stores, Inc.		4,903		420
				1,333
Energy (7.6%):
Callon Petroleum Co. (a)		16,520		177
Chevron Corp.		6,059		766
EOG Resources, Inc. (b)		3,171		395
Laredo Petroleum, Inc. (a) (b)		14,485		139
Newfield Exploration Co. (a)		11,315		342
Occidental Petroleum Corp.		4,136		346
Phillips 66		3,656		411
				2,576
Financials (16.6%):
Ameriprise Financial, Inc.		3,087		432
Bank of America Corp.		19,924		562
Berkshire Hathaway, Inc., Class B (a)		3,641		680
Cathay General Bancorp		4,982		202
E*TRADE Financial Corp. (a)		7,053		431
Essent Group Ltd. (a)		11,854		425
FCB Financial Holdings, Inc. (a)		6,724		395
JPMorgan Chase & Co.		4,936		514
Northern Trust Corp.		4,685		482
Regions Financial Corp.		18,400		327
TD Ameritrade Holding Corp.		5,890		323
Western Alliance BanCorp (a)		8,381		474
Zions BanCorp(b)		7,423		391
				5,638
Health Care (11.0%):
AbbVie, Inc.		3,712		344
Align Technology, Inc. (a)		569		195
Cigna Corp.		1,999		340

See notes to financial statements.
2

Victory Variable Insurance Funds  Schedule of Portfolio Investments — continued

Victory Variable Insurance Diversified Stock Fund  June 30, 2018

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description	Shares		Value
Express Scripts Holding Co. (a)		6,276	$	484
Innoviva, Inc. (a)		15,976		220
Johnson & Johnson		2,781		338
McKesson Corp.		1,781		238
Merck & Co., Inc.		4,581		278
Novartis AG, ADR		2,399		181
Pfizer, Inc.		7,624		277
UnitedHealth Group, Inc.		3,488		855
				3,750
Industrials (9.5%):
Allison Transmission Holdings, Inc.		11,350		459
Cummins, Inc.		1,278		170
FedEx Corp.		2,330		529
Norfolk Southern Corp.		3,448		520
PACCAR, Inc.		2,835		176
Patrick Industries, Inc. (a) (b)		3,960		225
SkyWest, Inc.		5,165		268
United Rentals, Inc. (a)		1,840		272
United Technologies Corp.		2,229		279
Universal Forest Products, Inc.		8,821		323
				3,221
Information Technology (23.6%):
Alphabet, Inc., Class C (a)		1,145		1,278
Apple, Inc.		8,673		1,605
DXC Technology Co.		3,488		281
Entegris, Inc.		5,773		196
Facebook, Inc., Class A (a)		5,328		1,036
Intel Corp.		3,869		192
Micron Technology, Inc. (a)		3,775		198
Microsoft Corp.		14,318		1,412
MKS Instruments, Inc.		3,003		287
ON Semiconductor Corp. (a) (b)		20,513		456
Perspecta, Inc.		1,758		36
Vishay Intertechnology, Inc.		9,603		223
YY, Inc., ADR (a)		3,414		343
Zebra Technologies Corp., Class A (a)		3,598		515
				8,058
Materials (4.8%):
Louisiana Pacific Corp.		16,630		453
Packaging Corp. of America		3,191		357
Reliance Steel & Aluminum Co.		3,721		326
Steel Dynamics, Inc.		10,934		502
				1,638
Telecommunication Services (2.8%):
AT&T, Inc.		10,410		334
Verizon Communications, Inc.		12,067		607
				941
Total Common Stocks (Cost $28,803)				33,100
Exchange-Traded Funds (1.3%):
SPDR S&P 500 ETF Trust		1,595		433
Total Exchange-Traded Funds (Cost $423)				433

See notes to financial statements.
3

Victory Variable Insurance Funds  Schedule of Portfolio Investments — continued

Victory Variable Insurance Diversified Stock Fund  June 30, 2018

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description	Shares		Value
Collateral for Securities Loaned (5.8%):
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 2.06% (c)		259,160	$	259
Fidelity Investments Prime Money Market Portfolio, Class I, 2.07% (c)		235,609		236
Fidelity Investments Money Market Government Portfolio, Class I, 1.81% (c)		532,809		533
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 2.16% (c)		117,790		118
JPMorgan Prime Money Market Fund, Capital Class, 2.05% (c)		612,493		612
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 2.12% (c)		212,023		212
Total Collateral for Securities Loaned (Cost $1,970)				1,970
Total Investments (Cost $31,196) — 104.3%				35,503
Other assets in excess of liabilities — (4.3%)				(1,466	)
NET ASSETS — 100.0%			$	34,037

(a)  Non-income producing security.

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

(c)  Rate disclosed is the daily yield on June 30, 2018.

ADR — American Depositary Receipt

See notes to financial statements.
4

  Statement of Assets and Liabilities

Victory Variable Insurance Funds  June 30, 2018

(Amounts in Thousands, Except Per Share Amounts)  (Unaudited)

	Victory Variable Insurance Diversified Stock Fund
ASSETS:
Investments, at value (Cost $31,196)	$	35,503	(a)
Cash and cash equivalents		12
Dividends receivable		19
Receivable for investments sold		648
Prepaid expenses		1
Total Assets		36,183
LIABILITIES:
Securities lending collateral		1,970
Payable for investments purchased		125
Payable for capital shares redeemed		6
Accrued expenses and other payables:
Investment advisory fees		9
Administration fees		2
Contract owner fees		17
Custodian fees		1
Transfer agent fees		—	(b)
Chief Compliance Officer fees		—	(b)
Trustees' fees		—	(b)
12b-1 fees		4
Other accrued expenses		12
Total Liabilities		2,146
NET ASSETS:
Capital		22,562
Accumulated net investment income (loss)		(1	)
Accumulated net realized gains (losses) from investments		7,169
Net unrealized appreciation (depreciation) on investments		4,307
Net Assets	$	34,037
Shares (unlimited number of shares authorized with a par value of $0.001 per share)		2,361
Net asset value, offering price & redemption price per share (c)	$	14.41

(a)  Includes $1,918 of securities on loan.

(b)  Rounds to less than $1.

(c) Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding.

See notes to financial statements.
5

  Statement of Operations

Victory Variable Insurance Funds  For the Six Months Ended June 30, 2018

(Amounts in Thousands)  (Unaudited)

	Victory Variable Insurance Diversified Stock Fund
Investment Income:
Dividend income	$	234
Interest		2
Securities lending income		1
Foreign tax withholding		(1	)
Total Income		236
Expenses:
Investment advisory fees		55
Administration fees		11
Contract owner fees		44
12b-1 fees		46
Custodian fees		1
Transfer agent fees		—	(a)
Trustees' fees		1
Chief Compliance Officer fees		—	(a)
Legal and audit fees		7
Interest expense on interfund lending (See Note 6)		—	(a)
Other expenses		10
Total Expenses		175
Net Investment Income (Loss)		61
Realized/Unrealized Gains (Losses) from Investment Transactions:
Net realized gains (losses) from investment transactions		1,414
Net change in unrealized appreciation/depreciation on investments		(2,569	)
Net realized/unrealized gains (losses) on investments		(1,155	)
Change in net assets resulting from operations	$	(1,094	)

(a)  Rounds to less than $1.

See notes to financial statements.
6

Victory Variable Insurance Funds   Statements of Changes in Net Assets

(Amounts in Thousands)

	Victory Variable Insurance Diversified Stock Fund
	Six Months Ended June 30, 2018			Year Ended December 31, 2017
	(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	61		$	242
Net realized gains (losses) from investment transactions		1,414			5,822
Net change in unrealized appreciation/depreciation on investments		(2,569	)		2,410
Change in net assets resulting from operations		(1,094	)		8,474
Distributions to Shareholders:
From net investment income		(79	)		(242	)
From net realized gains on investments		—			(517	)
Change in net assets resulting from distributions to shareholders		(79	)		(759	)
Change in net assets resulting from capital transactions		(3,667	)		(2,825	)
Change in net assets		(4,840	)		4,890
Net Assets:
Beginning of period		38,877			33,987
End of period	$	34,037		$	38,877
Accumulated net investment income (loss)	$	(1	)	$	17
Capital Transactions:
Proceeds from shares issued	$	162		$	2,575
Dividends reinvested		79			759
Cost of shares redeemed		(3,908	)		(6,159	)
Change in net assets resulting from capital transactions	$	(3,667	)	$	(2,825	)
Share Transactions:
Issued		11			189
Reinvested		5			53
Redeemed		(262	)		(460	)
Change in Shares		(246	)		(218	)

See notes to financial statements.
7

Victory Variable Insurance Funds  Financial Highlights

For a Share Outstanding Throughout Each Period

	Victory Variable Insurance Diversified Stock Fund
	Six Months Ended June 30, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013
	(Unaudited)
Net Asset Value, Beginning of Period	$	14.91		$	12.03		$	12.75		$	15.15		$	13.87		$	10.42
Investment Activities:
Net investment income (loss)		0.02	(a)		0.09	(a)		0.13	(a)		0.09			0.13			0.08
Net realized and unrealized gains (losses) on investments		(0.49	)		3.08			0.37			(0.53	)		1.28			3.45
Total from Investment Activities		(0.47	)		3.17			0.50			(0.44	)		1.41			3.53
Distributions to Shareholders:
Net investment income		(0.03	)		(0.09	)		(0.13	)		(0.09	)		(0.13	)		(0.08	)
Net realized gains from investments		—			(0.20	)		(0.09	)		(1.87	)		—			—
Total Distributions to Shareholders		(0.03	)		(0.29	)		(1.22	)		(1.96	)		(0.13	)		(0.08	)
Net Asset Value, End of Period	$	14.41		$	14.91		$	12.03		$	12.75		$	15.15		$	13.87
Total Return (b) (c)		(3.07	)%		26.45	%		3.90	%		(3.11	)%		10.20	%		33.93	%
Ratios/Supplemental Data:
Net Assets at end of period (000)	$	34,037		$	38,877		$	33,987		$	38,441		$	48,524		$	47,668
Ratio of net expenses to average net assets (d)		0.96	%		0.94	%		1.08	%		1.14	%		1.16	%		1.16	%
Ratio of net investment income (loss) to average net assets (d)		0.33	%		0.68	%		1.06	%		0.56	%		0.89	%		0.67	%
Portfolio turnover (c)		59	%		138	%		86	%		78	%		70	%		82	%

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

(b)  Total returns do not include any insurance, sales or administrative charges of variable annuity or life insurance contracts. If these charges were included, the returns would be lower.

(c)  Not annualized for periods less than a year.

(d)  Annualized for periods less than a year.

See notes to financial statements.
8

  Notes to Financial Statements

Victory Variable Insurance Funds  June 30, 2018

(Unaudited)

1.  Organization:

Victory Variable Insurance Funds (the "Trust") was organized on February 11, 1998 as a Delaware statutory trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Trust is comprised of nine funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of the Victory Variable Insurance Diversified Stock Fund (the "Fund"). The Fund offers a single class of shares: Class A Shares. Sales of shares of the Fund may only be made to separate accounts of various life insurance companies. The Fund seeks to provide long-term growth of capital.

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

2.  Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Investment Valuation:

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

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

Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.

For the six months ended June 30, 2018, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

9

  Notes to Financial Statements — continued

Victory Variable Insurance Funds  June 30, 2018

(Unaudited)

A summary of the valuations as of June 30, 2018, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments (in thousands):

	LEVEL 1 — Quoted Prices		Total
	Investments in Securities		Investments in Securities
Common Stocks	$	33,100	$	33,100
Exchange-Traded Funds		433		433
Collateral for Securities Loaned		1,970		1,970
Total	$	35,503	$	35,503

There were no transfers among any levels during the six months ended June 30, 2018.

Investment Companies:

Exchange-Traded Funds:

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

Open-End Funds:

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

Investment Transactions and Related Income:

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

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

Securities Lending:

The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Fund may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents as noted in the Fund's Schedule of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund's Schedule of Portfolio Investments. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Fund pays various fees in connection with the investment of cash collateral. The Fund pays the Agent fees based on the investment income received from securities lending activities. Securities lending income is disclosed in the Fund's Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them.

Securities lending transactions are entered into by the Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund.

10

  Notes to Financial Statements — continued

Victory Variable Insurance Funds  June 30, 2018

(Unaudited)

The following table is a summary of the Fund's securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity, which are subject to offset under the MSLA as of June 30, 2018 (in thousands):

Gross Amount of Recognized Assets (Value of Securities on Loan)		Value of Cash Collateral Received		Net Amount
$	1,918	$	1,970	$	52

Dividends to Shareholders:

Dividends from net investment income, if any, are declared and paid quarterly by the Fund. Distributable net realized gains, if any, are declared and distributed at least annually.

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

Federal Income Taxes:

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

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Allocations:

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

3.   Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2018 were as follows (in thousands):

Purchases		Sales
$	21,372	$	25,566

For the six months ended June 30, 2018, there were no purchases or sales of U.S. Government Securities.

4.   Fees and Transactions with Affiliates and Related Parties:

Investment advisory services are provided to the Fund by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly-owned indirect subsidiary of Victory Capital Holdings Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive 0.30% of the average daily net assets of the Fund. The Adviser may use its resources to assist with the Fund's distribution and marketing expenses.

VCM also serves as the Fund's administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II (collectively, the "Trusts"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Trusts and 0.04% of the average daily net assets over $30 billion of the Trusts.

Citi Fund Services Ohio, Inc. ("Citi") acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services.

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services.

11

  Notes to Financial Statements — continued

Victory Variable Insurance Funds  June 30, 2018

(Unaudited)

The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds complex, in the aggregate, compensate the Adviser for these services.

The Victory Trusts pay an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Trusts and are presented in the Statement of Operations.

Shearman & Sterling LLP provides legal services to the Trust.

Victory Capital Advisers, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust.

Pursuant to the Distribution and Service Plans adopted in accordance with Rule 12b-1 under the 1940 Act, the Distributor may receive a monthly distribution and service fee, at an annual rate of up to 0.25% of the average daily net assets of the Fund. The Distributor may pay a 12b-1 fee to life insurance companies for activities primarily intended to result in the sale of Fund shares to life insurance companies for the purpose of funding variable annuity contracts and variable life insurance policies or to provide services to owners of variable annuity contracts and variable life insurance policies whose contracts or policies are funded with shares of the Fund, which services are not otherwise provided by life insurance companies and paid for with fees charged by life insurance companies. The Distributor re-allowed all except for approximately $1 thousand to life insurance companies to provide these services.

The Fund has entered into Contract Owner Administrative Services Agreements with certain contract owner servicing agents. A contract owner servicing agent performs a number of services for its customers who hold contracts offered by separate accounts that invest in the Fund, such as establishing and maintaining accounts and records, processing additional contract units attributable to Fund dividend payments, arranging for bank wires, assisting in transactions, and changing account information. For these services, Class A Shares of the Fund pay a fee at an annual rate of up to 0.25% of its average daily net assets serviced by the agent. The Fund may enter into these agreements with financial institutions that provide such services. Contract owner servicing agents may waive all or a portion of their fee. (Not all agents may provide all services listed above.)

The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining a competitive expense ratio. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2018.

Certain officers and/or interested trustees of the Fund are also officers of the Adviser, Administrator and Fund Accountant, and Legal.

5.   Risks:

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

An investment in the Fund's shares represents an indirect investment in the securities owned by the Fund, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Fund invests, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Fund invests may affect the value of the Fund's shares. An investment in the Fund's shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Fund's distributions.

The Fund will be subject to credit risk with respect to the amount it expects to receive from counterparties for financial instruments entered into by the Fund. The Fund may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Fund may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund typically enters into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.

6.   Borrowing and Interfund Lending:

Line of Credit:

The Victory Trusts participate in a short-term, demand note "Line of Credit" agreement with Citibank. Under the agreement with Citibank as of July 28, 2017, the Victory Trusts may borrow up to $250 million, of which $100 million is committed and $150 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory RS Floating Rate Fund, another series of the Victory Trusts, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. The agreement was subsequently amended on July 27, 2018 with a new termination date on July 26, 2019. Citibank receives an annual commitment fee of 0.15% on $100

12

  Notes to Financial Statements — continued

Victory Variable Insurance Funds  June 30, 2018

(Unaudited)

million for providing the Line of Credit. For the six months ended June 30, 2018, Citibank earned approximately $74,384 in commitment fees from the Victory Trusts. Each fund in the Victory Trusts pays a pro-rata portion of the commitment fees plus any interest on amounts borrowed. As of June 30, 2018, the interest rate on outstanding borrowings was 3.10%.

The Fund did not utilize or participate in the Line of Credit during the six months ended June 30, 2018.

Interfund Lending:

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

The average loans for the days outstanding and average interest rate for the Fund during the six months ended June 30, 2018 was as follows (in thousands):

Borrower or Lender	Amount Outstanding at June 30, 2018		Average Borrowing*		Days Borrowing Outstanding		Average Interest Rate			Interest Paid**
Borrower	$	—	$	137		1		2.09	%	$	8

*  For the six months ended June 30, 2018, based on the number of days borrowings were outstanding.

**  Interest paid was less than $1 thousand.

7.  Federal Income Tax Information:

The tax character of distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2018.

The tax character of distributions paid during the most recent tax year ended December 31, 2017 were as follows (total distributions paid may differ from the Statement of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid) (in thousands):

Year Ended December 31, 2017 Distributions paid from
Ordinary Income		Net Long-Term Capital Gains		Total Distributions Paid
$	242	$	517	$	759

As of the most recent tax year ended December 31, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows (in thousands):

Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Earnings		Unrealized Appreciation (Depreciation)*		Total Accumulated Earnings (Deficit)
$	2,452	$	3,339	$	5,791	$	6,857	$	12,648

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

During the most recent tax year ended December 31, 2017, the Fund did not utilize any capital loss carryforwards.

As of June 30, 2018, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows (in thousands):

Cost of Investments for Federal Tax Purposes		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	31,229	$	4,992	$	(718	)	$	4,274

13

  Notes to Financial Statements — continued

Victory Variable Insurance Funds  June 30, 2018

(Unaudited)

8.   Fund Ownership:

Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the Fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2018, the shareholders listed below held more than 25% of the shares outstanding of the Fund and may be deemed to control the Fund.

Shareholder	Percent
New York Life Insurance and Annuity Corporation		90.4	%

9.  Recent Accounting Pronouncements:

In October 2016, the SEC released its Final Rules on Investment Company Reporting Modernization (the "Rules"). The Rules introduced two new regulatory reporting forms for investment companies, Form N-PORT and Form N-CEN. The Fund's compliance date for Form N-PORT is June 1, 2018, and the Fund will make its initial filing with the SEC on Form N-PORT for the period ending March 31, 2019. Effective with the period ended June 30, 2018, the Fund will be required to maintain, and make available to the SEC upon request, the information required to be included in Form N-PORT. Form N-PORT will replace Form N-Q filings effective with the requirement to file the Form N-PORT with the SEC for the period ending March 31, 2019. The Fund's compliance date for Form N-CEN is June 1, 2018, and the Fund will make its initial filing on Form N-CEN for the period ending December 31, 2018. Form N-CEN will replace Form N-SAR filings. The Fund's adoption of these amendments has no effect on the Fund's net assets or results of operations.

In March 2017, the FASB issued Accounting Standards Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08 and its impact on the financial statements and related disclosures has not yet been determined.

10.  Subsequent Events:

The Fund has evaluated the need for additional disclosures or adjustments resulting from subsequent events through the date these financial statements were issued. Based on this evaluation, there were no subsequent events to report that would have a material impact on the Fund's financial statements.

14

  Supplemental Information

Victory Variable Insurance FundsJune 30, 2018

(Unaudited)

Trustee and Officer Information

Board of Trustees:

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

The following tables list the Trustees, their ages, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees nine portfolios in the Trust, one portfolio in Victory Institutional Funds, 42 portfolios in Victory Portfolios and 20 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. Each Trustee's address is c/o Victory Variable Insurance Funds, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

Name and Age	Position Held with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years	Other Directorships Held During Past 5 Years
Independent Trustees.
David Brooks Adcock, 66	Trustee	February 2005	Consultant (since 2006).	Chair and Trustee, Turner Funds (December 2016- December 2017).
Nigel D.T. Andrews, 71	Vice Chair and Trustee	August 2002	Retired.	Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012); Director, Old Mutual US Asset Management (2002-2014).
E. Lee Beard, 67*	Trustee	February 2005	Retired (since 2015); Consultant, The Henlee Group, LLC (consulting) (2005-2015).	None.
Dennis M. Bushe, 74	Trustee	July 2016	Retired.	Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016).
Sally M. Dungan, 64	Trustee	February 2011	Chief Investment Officer, Tufts University (since 2002).	None.
John L. Kelly, 65	Trustee	February 2015	Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016), Endgate Commodities LLC; Chief Operating Officer, Liquidnet Holdings, Inc. (2011-2014).	Director, Caledonia Mining Corporation (since May 2012).
David L. Meyer, 61*	Trustee	December 2008	Retired.	None.
Gloria S. Nelund, 57	Trustee	July 2016	Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm.	TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016).
Leigh A. Wilson, 73	Chair and Trustee	February 1998	Private Investor.	Chair (since 2013), Caledonia Mining Corporation.
Interested Trustee.
David C. Brown, 46**	Trustee	May 2008	Chairman and Chief Executive Officer (since August 2013), Co-Chief Executive Officer (2011-2013), the Adviser; Chairman and Chief Executive Officer, Victory Capital Holdings, Inc. (since 2013).	None.

*   The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

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

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

15

  Supplemental Information — continued

Victory Variable Insurance FundsJune 30, 2018

(Unaudited)

Officers:

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

Name and Age	Position with the Trust	Date Commenced Service	Principal Occupation During Past 5 Years
Christopher K. Dyer, 56	President	February 2006*	Director of Mutual Fund Administration, the Adviser.
Scott A. Stahorsky, 49	Vice President	December 2014	Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015).
Erin G. Wagner, 44	Secretary	December 2014	Associate General Counsel, the Adviser (since 2013).
Allan Shaer, 53	Treasurer	May 2017	Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016).
Christopher A. Ponte, 34	Assistant Treasurer	December 2017	Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017), Chief Financial Officer, Victory Capital Advisers, Inc. (since 2018).
Colin Kinney, 44	Chief Compliance Officer	July 2017	Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser.
Chuck Booth, 58	Anti-Money Laundering Compliance Officer and Identity Theft Officer	May 2015	Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc.
Jay G. Baris, 64	Assistant Secretary	February 1998	Partner, Shearman & Sterling LLP (since 2018); Partner, Morrison & Foerster LLP (2011-2017).

*  On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.

16

  Supplemental Information — continued

Victory Variable Insurance FundsJune 30, 2018

(Unaudited)

Proxy Voting and Form N-Q Information

Proxy Voting:

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

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

Availability of Schedules of Portfolio Investments:

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 202-551-8090.

Expense Examples

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 through June 30, 2018.

Actual Expenses:

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	969.30	$	4.69		0.96	%

*Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

Hypothetical Example for Comparison Purposes:

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. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

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

Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Expenses Paid During Period* 1/1/18-6/30/18		Annualized Expense Ratio During Period 1/1/18-6/30/18
$	1,000.00	$	1,020.03	$	4.81		0.96	%

*Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 181/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

17

  Supplemental Information — continued

Victory Variable Insurance FundsJune 30, 2018

(Unaudited)

Portfolio Holdings:

(As a Percentage of Total Investments)

18

Privacy Policy

Protecting the Privacy of Information

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

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

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

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

Visit our web site at:
www.vcm.com Call Victory at:
800-539-FUND (800-539-3863)

VF-VIDS-SAR (06/18)

Item 2.  Code of Ethics.

Not applicable — only for annual reports.

Item 3.  Audit Committee Financial Experts.

Not applicable — only for annual reports.

Item 4.  Principal Accountant Fees and Services.

Not applicable — only for annual reports.

Item 5.  Audit Committee of Listed Registrants.

Not applicable.

Item 6.  Investments.

(a)       Not applicable.

(b)       Not applicable.

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10.  Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a)(1) Not applicable.

(a)(2) Not applicable.

(a)(3) Not applicable.

(a)(4) Not applicable.

(b)     Not applicable.

Item 13. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.

(a)(3) Not applicable.

(b)     Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Victory Variable Insurance Funds

By (Signature and Title)*	/s/ Allan Shaer
	Allan Shaer, Principal Financial Officer

Date August 14, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Christopher K. Dyer
	Christopher K. Dyer, Principal Executive Officer

Date August 14, 2018

By (Signature and Title)*	/s/ Allan Shaer
	Allan Shaer, Principal Financial Officer

Date August 14, 2018