Fidelity Variable Insurance Products: Freedom Funds Income, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050

Fidelity Variable Insurance Products: Freedom Funds Income, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050 December 31, 2017

Contents Performance 4 Management s Discussion of Fund Performance 15 VIP Freedom Income Portfolio SM 16 Investment Summary 17 Investments 19 Financial Statements VIP Freedom 2005 Portfolio SM 24 Investment Summary 25 Investments 27 Financial Statements VIP Freedom 2010 Portfolio SM 32 Investment Summary 33 Investments 35 Financial Statements VIP Freedom 2015 Portfolio SM 40 Investment Summary 41 Investments 43 Financial Statements VIP Freedom 2020 Portfolio SM 48 Investment Summary 49 Investments 51 Financial Statements VIP Freedom 2025 Portfolio SM 56 Investment Summary 57 Investments 59 Financial Statements VIP Freedom 2030 Portfolio SM 64 Investment Summary 65 Investments 67 Financial Statements VIP Freedom 2035 Portfolio SM 72 Investment Summary 73 Investments 75 Financial Statements VIP Freedom 2040 Portfolio SM 80 Investment Summary 81 Investments 83 Financial Statements VIP Freedom 2045 Portfolio SM 88 Investment Summary 89 Investments 91 Financial Statements VIP Freedom 2050 Portfolio SM 96 Investment Summary Notes to Financial Statements 104 Report of Independent Registered Public 115 Accounting Firm Trustees and Officers 116 Shareholder Expense Example 123 Distributions 126 Board Approval of Investment Advisory 130 Contracts and Management Fees 97 Investments 99 Financial Statements

To view a fund s proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission s (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines. Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract. Standard & Poor s, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation. Other third-party marks appearing herein are the property of their respective owners. All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. 2018 FMR LLC. All rights reserved. This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus. A fund files its complete schedule of portfolio holdings 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 web site at http://www.sec.gov. A fund s Forms N-Q may be reviewed and copied at the SEC s Public Reference Room in Washington, DC. Information regarding the operation of the SEC s Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund s portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity s web site at http:// www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Neither the Funds nor Fidelity Distributors Corporation is a bank.

VIP Freedom Income Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Initial Class 8.48% 4.35% 4.02% Service Class 8.49% 4.25% 3.91% Service Class 2 8.36% 4.10% 3.76% Past 5 years Past 10 years $10,000 Over 10 Years Let s say hypothetically that $10,000 was invested in VIP Freedom Income Portfolio SM Initial Class on December 31, 2007. The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period. Period Ending Values $14,825 VIP Freedom Income Portfolio SM Initial Class $14,811 Bloomberg Barclays U.S. Aggregate Bond Index 4

VIP Freedom 2005 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Initial Class 11.06% 5.89% 4.31% Service Class 10.90% 5.77% 4.20% Service Class 2 10.74% 5.63% 4.04% Past 5 years Past 10 years $10,000 Over 10 Years Let s say hypothetically that $10,000 was invested in VIP Freedom 2005 Portfolio SM Initial Class on December 31, 2007. The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period. Period Ending Values $15,247 VIP Freedom 2005 Portfolio SM Initial Class $14,811 Bloomberg Barclays U.S. Aggregate Bond Index 5

VIP Freedom 2010 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Initial Class 13.08% 7.12% 5.17% Service Class 12.90% 7.01% 5.06% Service Class 2 12.80% 6.85% 4.91% Past 5 years Past 10 years $10,000 Over 10 Years Let s say hypothetically that $10,000 was invested in VIP Freedom 2010 Portfolio SM Initial Class on December 31, 2007. The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period. Period Ending Values $16,556 VIP Freedom 2010 Portfolio SM Initial Class $14,811 Bloomberg Barclays U.S. Aggregate Bond Index 6

VIP Freedom 2015 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Initial Class 15.10% 7.80% 5.34% Service Class 14.93% 7.67% 5.23% Service Class 2 14.80% 7.52% 5.07% Past 5 years Past 10 years $10,000 Over 10 Years Let s say hypothetically that $10,000 was invested in VIP Freedom 2015 Portfolio SM Initial Class on December 31, 2007. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $16,827 VIP Freedom 2015 Portfolio SM Initial Class $22,603 S&P 500 Index 7

VIP Freedom 2020 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Initial Class 16.62% 8.46% 5.30% Service Class 16.47% 8.35% 5.19% Service Class 2 16.26% 8.17% 5.03% Past 5 years Past 10 years $10,000 Over 10 Years Let s say hypothetically that $10,000 was invested in VIP Freedom 2020 Portfolio SM Initial Class on December 31, 2007. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $16,761 VIP Freedom 2020 Portfolio SM Initial Class $22,603 S&P 500 Index 8

VIP Freedom 2025 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Initial Class 17.89% 9.51% 5.81% Service Class 17.84% 9.41% 5.71% Service Class 2 17.57% 9.25% 5.55% Past 5 years Past 10 years $10,000 Over 10 Years Let s say hypothetically that $10,000 was invested in VIP Freedom 2025 Portfolio SM Initial Class on December 31, 2007. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $17,592 VIP Freedom 2025 Portfolio SM Initial Class $22,603 S&P 500 Index 9

VIP Freedom 2030 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Initial Class 20.96% 10.44% 5.76% Service Class 20.82% 10.32% 5.65% Service Class 2 20.69% 10.18% 5.50% Past 5 years Past 10 years $10,000 Over 10 Years Let s say hypothetically that $10,000 was invested in VIP Freedom 2030 Portfolio SM Initial Class on December 31, 2007. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $17,512 VIP Freedom 2030 Portfolio SM Initial Class $22,603 S&P 500 Index 10

VIP Freedom 2035 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Past 5 years Life of fund A Initial Class 23.35% 11.47% 14.09% Service Class 23.24% 11.37% 13.98% Service Class 2 23.07% 11.19% 13.81% A From April 8, 2009 $10,000 Over Life of Fund Let s say hypothetically that $10,000 was invested in VIP Freedom 2035 Portfolio SM Initial Class on April 8, 2009, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $31,640 VIP Freedom 2035 Portfolio SM Initial Class $38,944 S&P 500 Index 11

VIP Freedom 2040 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Past 5 years Life of fund A Initial Class 23.60% 11.60% 14.27% Service Class 23.42% 11.49% 14.16% Service Class 2 23.30% 11.33% 13.99% A From April 8, 2009 $10,000 Over Life of Fund Let s say hypothetically that $10,000 was invested in VIP Freedom 2040 Portfolio SM Initial Class on April 8, 2009, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $32,083 VIP Freedom 2040 Portfolio SM Initial Class $38,944 S&P 500 Index 12

VIP Freedom 2045 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Past 5 years Life of fund A Initial Class 23.59% 11.74% 14.40% Service Class 23.42% 11.63% 14.29% Service Class 2 23.30% 11.46% 14.12% A From April 8, 2009 $10,000 Over Life of Fund Let s say hypothetically that $10,000 was invested in VIP Freedom 2045 Portfolio SM Initial Class on April 8, 2009, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $32,397 VIP Freedom 2045 Portfolio SM Initial Class $38,944 S&P 500 Index 13

VIP Freedom 2050 Portfolio SM Performance: The Bottom Line Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund s total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company s separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow. Average Annual Total Returns For the periods ended December 31, 2017 Past 1 year Past 5 years Life of fund A Initial Class 23.52% 11.80% 14.56% Service Class 23.46% 11.69% 14.45% Service Class 2 23.30% 11.52% 14.27% A From April 8, 2009 $10,000 Over Life of Fund Let s say hypothetically that $10,000 was invested in VIP Freedom 2050 Portfolio SM Initial Class on April 8, 2009, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period. Period Ending Values $32,781 VIP Freedom 2050 Portfolio SM Initial Class $38,944 S&P 500 Index 14

Management s Discussion of Fund Performance Market Recap: U.S. equities, as measured by the S&P 500 index, returned 21.83% in 2017. Sector-wise, information technology (+39%) fared best amid strong earnings growth from many major index constituents. Materials (+24%) was helped by higher demand, especially from China, though industrials (+21%) modestly lagged. Consumer discretionary (+23%) outperformed despite online rivals to brick-and-mortar retailers. Financials edged the broader market on an uptick in interest rates that, at the same time, held back real estate (+11%) and other bond proxy sectors such as consumer staples (+13%) and utilities (+12%). Defensive-oriented energy (-1%) and telecommunication services (-1%) marked the only sector-level declines. Elsewhere, the MSCI ACWI (All Country World Index) ex USA Index gained 27.40% for the year, aided partly by a generally weak U.S. dollar. Certain election results in continental Europe (+28%) suggested ebbing political uncertainty and near-term risk there; meanwhile, the U.K. (+21%) faced moremixed conditions ahead of its expected exit from the European Union. Japan (+24%), despite monetary easing and recent pressure from regional yen strength, lagged the rest of the Asia-Pacific group (+26%). Commodity-price volatility slowed Canada (+17%), but the emerging-markets (EM) group (+36%) sped ahead. In fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index returned 3.54% in 2017. Within the Bloomberg Barclays index, investment-grade corporate credit (+6%) led all major segments, including Treasuries (+2%). Outside the index, riskier, non-core fixed-income asset classes, such as EM debt and U.S. high-yield bonds, well outpaced the broader market, whereas Treasury Inflation-Protected Securities (TIPS) lagged, according to Bloomberg Barclays. Comments from Co-Portfolio Managers Andrew Dierdorf and Brett Sumsion: For the year ending December 31, 2017, VIP Freedom Funds share classes posted gains ranging from roughly 8% to 24%. Each Portfolio outperformed its respective Composite index by between 1 and 3 percentage points, with the gap growing as the target date increased. (For specific Portfolio results, please refer to the performance section of this report.) Given that non-u.s. equities, particularly in emerging markets, outperformed U.S. stocks, our overweighting foreign developed-markets and EM equity while underweighting U.S. stocks delivered value versus Composites. Also, both Fidelity VIP Overseas Portfolio (+30%), which led its specific benchmark by nearly 6 percentage points, and Fidelity VIP Emerging Markets Portfolio (+47%), which led by 10 percentage points, further aided our overall relative performance. In the U.S. equity asset class, allocations to mid-cap and value investments detracted. Looking at individual results, Fidelity VIP Growth & Income Portfolio (+17%), which lagged its particular benchmark by 5 percentage points, proved our biggest detractor. Collectively, though, results from underlying actively managed U.S. equity investments helped overall. In fixed income, our overall strategy of underweighting the core and overweighting the short-term fixed-income asset classes, combined with an out-of-composite allocation to Fidelity VIP High Income Portfolio (+7.0%), added value. With an assist from Fidelity VIP Investment Grade Bond Portfolio (+4.2%), aggregate results among underlying fixed-income investments also helped. During the period, we further reduced exposure to U.S. equities and high-yield debt while increasing exposure to short-term and core fixed income, the latter move accomplished partly via establishing a position in long-term Treasuries. The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund. 15

VIP Freedom Income Portfolio SM Investment Summary (Unaudited) The information in the following tables is based on the direct investments of the Fund. Top Holdings as of December 31, 2017 % of fund s net assets VIP Investment Grade Bond Portfolio Initial Class 39.1 VIP Government Money Market Portfolio Initial Class 1.08% 32.5 VIP Overseas Portfolio Initial Class 6.5 VIP Emerging Markets Portfolio Initial Class 3.8 VIP Growth & Income Portfolio Initial Class 3.0 VIP Equity-Income Portfolio Initial Class 2.6 VIP Growth Portfolio Initial Class 2.5 VIP Contrafund Portfolio Initial Class 2.4 Fidelity Long-Term Treasury Bond Index Fund Premium Class 2.1 VIP High Income Portfolio Initial Class 2.0 96.5 Asset Allocation (% of fund s net assets) Period end Domestic Equity Funds 14.0% International Equity Funds 10.3% Bond Funds 43.2% Short-Term Funds 32.5% 16

VIP Freedom Income Portfolio SM Investments December 31, 2017 Showing Percentage of Net Assets Domestic Equity Funds 14.0% Shares Value VIP Contrafund Portfolio Initial Class (a) 27,169 $ 1,030,804 VIP Equity Income Portfolio Initial Class (a) 45,494 1,086,849 VIP Growth & Income Portfolio Initial Class (a) 54,907 1,246,930 VIP Growth Portfolio Initial Class (a) 14,172 1,049,451 VIP Mid Cap Portfolio Initial Class (a) 7,757 302,048 VIP Value Portfolio Initial Class (a) 48,808 798,503 VIP Value Strategies Portfolio Initial Class (a) 27,326 389,937 TOTAL DOMESTIC EQUITY FUNDS (Cost $4,187,430) 5,904,522 International Equity Funds 10.3% VIP Emerging Markets Portfolio Initial Class (a) 131,475 1,607,941 VIP Overseas Portfolio Initial Class (a) 119,560 2,734,339 TOTAL INTERNATIONAL EQUITY FUNDS (Cost $2,997,568) 4,342,280 Bond Funds 43.2% Fidelity Long Term Treasury Bond Index Fund Premium Class (a) 68,372 907,985 VIP High Income Portfolio Initial Class (a) 154,458 841,795 VIP Investment Grade Bond Portfolio Initial Class (a) 1,290,590 16,519,556 TOTAL BOND FUNDS (Cost $18,076,339) 18,269,336 Short-Term Funds 32.5% VIP Government Money Market Portfolio Initial Class 1.08% (a)(b) (Cost $13,710,985) 13,710,985 13,710,985 TOTAL INVESTMENT IN SECURITIES 100.0% (Cost $38,972,322) 42,227,123 NET OTHER ASSETS (LIABILITIES) 0.0% (3,275) NET ASSETS 100% $ 42,223,848 Legend (a) Affiliated Fund (b) The rate quoted is the annualized seven-day yield of the fund at period end. 17

Investments continued Affiliated Underlying Funds Information regarding the Fund s fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: Value, beginning of period Sales Proceeds Dividend Income Realized Gain (loss) Change in Unrealized appreciation (depreciation) Affiliate Purchases Fidelity Long-Term Treasury Bond Index Fund Premium Class $ $ 944,075 $ 32,707 $ 1,268 $ (152) $ (3,231) $ 907,985 VIP Contrafund Portfolio Initial Class 1,087,011 328,408 525,802 69,889 10,240 130,947 1,030,804 VIP Emerging Markets Portfolio Initial Class 1,742,816 453,649 1,281,800 12,685 111,560 581,716 1,607,941 VIP Equity-Income Portfolio Initial Class 1,152,940 314,545 472,272 42,520 (9,086) 100,722 1,086,849 VIP Government Money Market Portfolio Initial Class 1.08% 11,729,205 5,170,363 3,188,583 89,366 13,710,985 VIP Growth & Income Portfolio Initial Class 1,315,424 358,217 576,756 47,821 23,979 126,066 1,246,930 VIP Growth Portfolio Initial Class 1,090,861 353,727 636,160 89,082 48,265 192,758 1,049,451 VIP High Income Portfolio Initial Class 1,474,818 293,675 950,106 49,084 (35,081) 58,489 841,795 VIP Investment Grade Bond Portfolio Initial Class 14,935,903 6,225,216 4,803,649 486,722 (16,707) 178,793 16,519,556 VIP Mid Cap Portfolio Initial Class 313,674 92,229 145,037 16,830 3,183 37,999 302,048 VIP Overseas Portfolio Initial Class 2,148,058 819,426 837,421 40,114 11,611 592,665 2,734,339 VIP Value Portfolio Initial Class 849,898 238,568 375,039 33,173 9,332 75,744 798,503 VIP Value Strategies Portfolio Initial Class 411,279 208,834 193,749 107,505 (3,160) (33,267) 389,937 Total $38,251,887 $15,800,932 $14,019,081 $1,086,059 $153,984 $2,039,401 $42,227,123 Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable. Value, end of period Investment Valuation All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. 18

VIP Freedom Income Portfolio SM Financial Statements Statement of Assets and Liabilities December 31, 2017 Assets Investment in securities, at value (cost $38,972,322) See accompanying schedule $ 42,227,123 Cash 1 Receivable for investments sold 903,528 Receivable for fund shares sold 4,701 Total assets 43,135,353 Liabilities Payable for fund shares redeemed $ 907,404 Distribution and service plan fees payable 4,101 Total liabilities 911,505 Net Assets $ 42,223,848 Net Assets consist of: Paid in capital $ 38,691,550 Undistributed net investment income 6,629 Accumulated undistributed net realized gain (loss) on investments 270,868 Net unrealized appreciation (depreciation) on investments 3,254,801 Net Assets $ 42,223,848 Initial Class: Net Asset Value, offering price and redemption price per share ($16,085,980 1,382,707 shares) $ 11.63 Service Class: Net Asset Value, offering price and redemption price per share ($11,227,345 965,378 shares) $ 11.63 Service Class 2: Net Asset Value, offering price and redemption price per share ($14,910,523 1,286,943 shares) $ 11.59 Statement of Operations Year ended December 31, 2017 Investment Income Income distributions from underlying funds $ 674,942 Expenses Distribution and service plan fees $ 45,729 Independent trustees fees and expenses 150 Total expenses before reductions 45,879 Expense reductions (150) 45,729 Net investment income (loss) 629,213 Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares 153,984 Capital gain distributions from underlying funds 411,117 Total net realized gain (loss) 565,101 Change in net unrealized appreciation (depreciation) on underlying funds 2,039,401 Net gain (loss) 2,604,502 Net increase (decrease) in net assets resulting from operations $ 3,233,715 19

Financial Statements continued Statement of Changes in Net Assets Year ended December 31, 2017 Year ended December 31, 2016 Increase (Decrease) in Net Assets Operations Net investment income (loss) $ 629,213 $ 525,036 Net realized gain (loss) 565,101 263,116 Change in net unrealized appreciation (depreciation) 2,039,401 850,893 Net increase (decrease) in net assets resulting from operations 3,233,715 1,639,045 Distributions to shareholders from net investment income (619,471) (525,338) Distributions to shareholders from net realized gain (345,560) (394,488) Total distributions (965,031) (919,826) Share transactions net increase (decrease) 1,706,894 (219,386) Total increase (decrease) in net assets 3,975,578 499,833 Net Assets Beginning of period 38,248,270 37,748,437 End of period $ 42,223,848 $ 38,248,270 Other Information Undistributed net investment income end of period $ 6,629 $ 20

Financial Highlights VIP Freedom Income Portfolio Initial Class Years ended December 31, 2017 2016 2015 2014 2013 Selected Per Share Data Net asset value, beginning of period $ 10.98 $ 10.78 $ 11.03 $ 10.89 $ 10.57 Income from Investment Operations Net investment income (loss) A.19.16.21.18.18 Net realized and unrealized gain (loss).74.32 (.25).23.40 Total from investment operations.93.48 (.04).41.58 Distributions from net investment income (.18) (.16) (.20) (.17) (.17) Distributions from net realized gain (.10) (.11) (.02) (.10) (.10) Total distributions (.28) (.28) B (.21) C (.27) (.26) D Net asset value, end of period $ 11.63 $ 10.98 $ 10.78 $ 11.03 $ 10.89 Total Return E,F 8.48% 4.50% (.34)% 3.78% 5.55% Ratios to Average Net Assets G,H Expenses before reductions I % % % % % Expenses net of fee waivers, if any % % % % % Expenses net of all reductions % % % % % Net investment income (loss) 1.67% 1.48% 1.85% 1.62% 1.67% Supplemental Data Net assets, end of period (000 omitted) $ 16,086 $ 14,956 $ 14,548 $ 17,386 $ 16,980 Portfolio turnover rate G 35% 38% 36% 32% 43% A Calculated based on average shares outstanding during the period. B Total distributions of $.28 per share is comprised of distributions from net investment income of $.164 and distributions from net realized gain of $.113 per share. C Total distributions of $.21 per share is comprised of distributions from net investment income of $.198 and distributions from net realized gain of $.015 per share. D Total distributions of $.26 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $.097 per share. E Total returns do not reflect charges attributable to your insurance company s separate account. Inclusion of these charges would reduce the total returns shown. F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. G Amounts do not include the activity of the Underlying Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests. I Amount represents less than.005%. 21

Financial Highlights continued VIP Freedom Income Portfolio Service Class Years ended December 31, 2017 2016 2015 2014 2013 Selected Per Share Data Net asset value, beginning of period $ 10.97 $ 10.78 $ 11.03 $ 10.89 $ 10.58 Income from Investment Operations Net investment income (loss) A.18.15.19.17.17 Net realized and unrealized gain (loss).75.31 (.24).23.40 Total from investment operations.93.46 (.05).40.57 Distributions from net investment income (.17) (.15) (.19) (.16) (.16) Distributions from net realized gain (.10) (.11) (.02) (.10) (.10) Total distributions (.27) (.27) B (.20) C (.26) (.26) Net asset value, end of period $ 11.63 $ 10.97 $ 10.78 $ 11.03 $ 10.89 Total Return D,E 8.49% 4.32% (.42)% 3.69% 5.38% Ratios to Average Net Assets F,G Expenses before reductions.10%.10%.10%.10%.10% Expenses net of fee waivers, if any.10%.10%.10%.10%.10% Expenses net of all reductions.10%.10%.10%.10%.10% Net investment income (loss) 1.57% 1.38% 1.75% 1.52% 1.57% Supplemental Data Net assets, end of period (000 omitted) $ 11,227 $ 9,286 $ 9,825 $ 6,193 $ 4,529 Portfolio turnover rate F 35% 38% 36% 32% 43% A B C D E F G Calculated based on average shares outstanding during the period. Total distributions of $.27 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $.113 per share. Total distributions of $.20 per share is comprised of distributions from net investment income of $.189 and distributions from net realized gain of $.015 per share. Total returns do not reflect charges attributable to your insurance company s separate account. Inclusion of these charges would reduce the total returns shown. Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. Amounts do not include the activity of the Underlying Funds. Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests. 22

VIP Freedom Income Portfolio Service Class 2 Years ended December 31, 2017 2016 2015 2014 2013 Selected Per Share Data Net asset value, beginning of period $ 10.93 $ 10.74 $ 10.99 $ 10.85 $ 10.54 Income from Investment Operations Net investment income (loss) A.16.13.18.15.15 Net realized and unrealized gain (loss).75.31 (.24).23.40 Total from investment operations.91.44 (.06).38.55 Distributions from net investment income (.15) (.14) (.17) (.14) (.14) Distributions from net realized gain (.10) (.11) (.02) (.10) (.10) Total distributions (.25) (.25) (.19) (.24) (.24) Net asset value, end of period $ 11.59 $ 10.93 $ 10.74 $ 10.99 $ 10.85 Total Return B,C 8.36% 4.17% (.57)% 3.54% 5.21% Ratios to Average Net Assets D,E Expenses before reductions.25%.25%.25%.25%.25% Expenses net of fee waivers, if any.25%.25%.25%.25%.25% Expenses net of all reductions.25%.25%.25%.25%.25% Net investment income (loss) 1.42% 1.23% 1.60% 1.37% 1.42% Supplemental Data Net assets, end of period (000 omitted) $ 14,911 $ 14,007 $ 13,375 $ 8,860 $ 7,500 Portfolio turnover rate D 35% 38% 36% 32% 43% A B C D E Calculated based on average shares outstanding during the period. Total returns do not reflect charges attributable to your insurance company s separate account. Inclusion of these charges would reduce the total returns shown. Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. Amounts do not include the activity of the Underlying Funds. Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests. 23

VIP Freedom 2005 Portfolio SM Investment Summary (Unaudited) The information in the following tables is based on the direct investments of the Fund. Top Holdings as of December 31, 2017 % of fund s net assets VIP Investment Grade Bond Portfolio Initial Class 35.7 VIP Government Money Market Portfolio Initial Class 1.08% 26.0 VIP Overseas Portfolio Initial Class 8.7 VIP Emerging Markets Portfolio Initial Class 4.7 VIP Growth & Income Portfolio Initial Class 4.4 VIP Equity-Income Portfolio Initial Class 3.8 VIP Growth Portfolio Initial Class 3.7 VIP Contrafund Portfolio Initial Class 3.6 VIP Value Portfolio Initial Class 2.8 Fidelity Long-Term Treasury Bond Index Fund Premium Class 2.1 95.5 Asset Allocation (% of fund s net assets) Period end Domestic Equity Funds 20.8% International Equity Funds 13.4% Bond Funds 39.8% Short-Term Funds 26.0% 24

VIP Freedom 2005 Portfolio SM Investments December 31, 2017 Showing Percentage of Net Assets Domestic Equity Funds 20.8% Shares Value VIP Contrafund Portfolio Initial Class (a) 8,843 $ 335,492 VIP Equity Income Portfolio Initial Class (a) 14,807 353,732 VIP Growth & Income Portfolio Initial Class (a) 17,864 405,682 VIP Growth Portfolio Initial Class (a) 4,614 341,649 VIP Mid Cap Portfolio Initial Class (a) 2,524 98,300 VIP Value Portfolio Initial Class (a) 15,885 259,879 VIP Value Strategies Portfolio Initial Class (a) 8,894 126,922 TOTAL DOMESTIC EQUITY FUNDS (Cost $1,407,033) 1,921,656 International Equity Funds 13.4% VIP Emerging Markets Portfolio Initial Class (a) 36,099 441,488 VIP Overseas Portfolio Initial Class (a) 35,141 803,667 TOTAL INTERNATIONAL EQUITY FUNDS (Cost $955,289) 1,245,155 Bond Funds 39.8% Fidelity Long Term Treasury Bond Index Fund Premium Class (a) 14,710 195,344 VIP High Income Portfolio Initial Class (a) 33,820 184,319 VIP Investment Grade Bond Portfolio Initial Class (a) 258,360 3,307,006 TOTAL BOND FUNDS (Cost $3,645,163) 3,686,669 Short-Term Funds 26.0% VIP Government Money Market Portfolio Initial Class 1.08% (a)(b) (Cost $2,404,539) 2,404,539 2,404,539 TOTAL INVESTMENT IN SECURITIES 100.0% (Cost $8,412,024) 9,258,019 NET OTHER ASSETS (LIABILITIES) 0.0% 65 NET ASSETS 100% $ 9,258,084 Legend (a) Affiliated Fund (b) The rate quoted is the annualized seven-day yield of the fund at period end. 25

Investments continued Affiliated Underlying Funds Information regarding the Fund s fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: Value, beginning of period Sales Proceeds Dividend Income Realized Gain (loss) Change in Unrealized appreciation (depreciation) Affiliate Purchases Fidelity Long-Term Treasury Bond Index Fund Premium Class $ $ 196,123 $ 104 $ 259 $ (2) $ (673) $ 195,344 VIP Contrafund Portfolio Initial Class 296,988 138,608 142,683 20,447 4,510 38,069 335,492 VIP Emerging Markets Portfolio Initial Class 389,706 168,788 287,832 3,183 31,903 138,923 441,488 VIP Equity-Income Portfolio Initial Class 314,972 136,852 125,587 12,601 (1,775) 29,270 353,732 VIP Government Money Market Portfolio Initial Class 1.08% 1,616,741 1,223,361 435,563 14,321 2,404,539 VIP Growth & Income Portfolio Initial Class 359,346 155,885 154,862 14,081 7,149 38,164 405,682 VIP Growth Portfolio Initial Class 298,119 146,543 175,767 25,752 29,677 43,077 341,649 VIP High Income Portfolio Initial Class 269,631 84,859 174,580 9,897 (11,627) 16,036 184,319 VIP Investment Grade Bond Portfolio Initial Class 2,446,962 1,615,191 783,680 88,947 (1,899) 30,432 3,307,006 VIP Mid Cap Portfolio Initial Class 85,709 39,373 39,382 4,878 1,308 11,292 98,300 VIP Overseas Portfolio Initial Class 580,861 287,091 235,527 11,019 4,621 166,621 803,667 VIP Value Portfolio Initial Class 232,164 101,269 98,970 10,064 6,179 19,237 259,879 VIP Value Strategies Portfolio Initial Class 112,357 75,650 51,157 31,114 (13) (9,915) 126,922 Total $7,003,556 $4,369,593 $2,705,694 $246,563 $ 70,031 $520,533 $9,258,019 Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable. Value, end of period Investment Valuation All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. 26

VIP Freedom 2005 Portfolio SM Financial Statements Statement of Assets and Liabilities December 31, 2017 Assets Investment in securities, at value (cost $8,412,024) See accompanying schedule $ 9,258,019 Cash 2 Receivable for investments sold 435 Total assets 9,258,456 Liabilities Payable for fund shares redeemed $ 282 Distribution and service plan fees payable 90 Total liabilities 372 Net Assets $ 9,258,084 Net Assets consist of: Paid in capital $ 8,323,116 Undistributed net investment income 1,697 Accumulated undistributed net realized gain (loss) on investments 87,276 Net unrealized appreciation (depreciation) on investments 845,995 Net Assets $ 9,258,084 Initial Class: Net Asset Value, offering price and redemption price per share ($7,931,489 640,256 shares) $ 12.39 Service Class: Net Asset Value, offering price and redemption price per share ($1,222,432 98,093 shares) $ 12.46 Service Class 2: Net Asset Value, offering price and redemption price per share ($104,163 8,424 shares) $ 12.37 Statement of Operations Year ended December 31, 2017 Investment Income Income distributions from underlying funds $ 135,181 Expenses Distribution and service plan fees $ 1,084 Independent trustees fees and expenses 30 Total expenses before reductions 1,114 Expense reductions (30) 1,084 Net investment income (loss) 134,097 Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares 70,031 Capital gain distributions from underlying funds 111,382 Total net realized gain (loss) 181,413 Change in net unrealized appreciation (depreciation) on underlying funds 520,533 Net gain (loss) 701,946 Net increase (decrease) in net assets resulting from operations $ 836,043 27

Financial Statements continued Statement of Changes in Net Assets Year ended December 31, 2017 Year ended December 31, 2016 Increase (Decrease) in Net Assets Operations Net investment income (loss) $ 134,097 $ 104,440 Net realized gain (loss) 181,413 103,291 Change in net unrealized appreciation (depreciation) 520,533 132,669 Net increase (decrease) in net assets resulting from operations 836,043 340,400 Distributions to shareholders from net investment income (132,399) (104,710) Distributions to shareholders from net realized gain (127,656) (94,196) Total distributions (260,055) (198,906) Share transactions net increase (decrease) 1,678,577 (371,258) Total increase (decrease) in net assets 2,254,565 (229,764) Net Assets Beginning of period 7,003,519 7,233,283 End of period $ 9,258,084 $ 7,003,519 Other Information Undistributed net investment income end of period $ 1,697 $ 28

Financial Highlights VIP Freedom 2005 Portfolio Initial Class Years ended December 31, 2017 2016 2015 2014 2013 Selected Per Share Data Net asset value, beginning of period $ 11.51 $ 11.29 $ 11.56 $ 11.37 $ 10.56 Income from Investment Operations Net investment income (loss) A.20.17.19.20.17 Net realized and unrealized gain (loss) 1.06.38 (.22).29.86 Total from investment operations 1.26.55 (.03).49 1.03 Distributions from net investment income (.19) (.18) (.22) (.19) (.18) Distributions from net realized gain (.19) (.15) (.03) (.11) (.04) Total distributions (.38) (.33) (.24) B (.30) (.22) Net asset value, end of period $ 12.39 $ 11.51 $ 11.29 $ 11.56 $ 11.37 Total Return C,D 11.06% 5.00% (.25)% 4.30% 9.74% Ratios to Average Net Assets E,F Expenses before reductions G % % % % % Expenses net of fee waivers, if any % % % % % Expenses net of all reductions % % % % % Net investment income (loss) 1.65% 1.50% 1.64% 1.71% 1.57% Supplemental Data Net assets, end of period (000 omitted) $ 7,931 $ 6,363 $ 6,657 $ 8,047 $ 7,145 Portfolio turnover rate E 33% 24% 23% 21% 54% A Calculated based on average shares outstanding during the period. B Total distributions of $.24 per share is comprised of distributions from net investment income of $.217 and distributions from net realized gain of $.025 per share. C Total returns do not reflect charges attributable to your insurance company s separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Amounts do not include the activity of the Underlying Funds. F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests. G Amount represents less than.005%. 29

Financial Highlights continued VIP Freedom 2005 Portfolio Service Class Years ended December 31, 2017 2016 2015 2014 2013 Selected Per Share Data Net asset value, beginning of period $ 11.58 $ 11.36 $ 11.63 $ 11.44 $ 10.57 Income from Investment Operations Net investment income (loss) A.19.16.18.19.16 Net realized and unrealized gain (loss) 1.06.38 (.22).29.85 Total from investment operations 1.25.54 (.04).48 1.01 Distributions from net investment income (.18) (.17) (.21) (.18) (.11) Distributions from net realized gain (.19) (.15) (.03) (.11) (.04) Total distributions (.37) (.32) (.23) B (.29) (.14) C Net asset value, end of period $ 12.46 $ 11.58 $ 11.36 $ 11.63 $ 11.44 Total Return D,E 10.90% 4.89% (.35)% 4.18% 9.60% Ratios to Average Net Assets F,G Expenses before reductions.10%.10%.10%.10%.10% Expenses net of fee waivers, if any.10%.10%.10%.10%.10% Expenses net of all reductions.10%.10%.10%.10%.10% Net investment income (loss) 1.55% 1.40% 1.54% 1.61% 1.47% Supplemental Data Net assets, end of period (000 omitted) $ 1,222 $ 558 $ 484 $ 408 $ 125 Portfolio turnover rate F 33% 24% 23% 21% 54% A B C D E F G Calculated based on average shares outstanding during the period. Total distributions of $.23 per share is comprised of distributions from net investment income of $.206 and distributions from net realized gain of $.025 per share. Total distributions of $.14 per share is comprised of distributions from net investment income of $.107 and distributions from net realized gain of $.037 per share. Total returns do not reflect charges attributable to your insurance company s separate account. Inclusion of these charges would reduce the total returns shown. Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. Amounts do not include the activity of the Underlying Funds. Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests. 30