Annual Report December 31, 2016

Annual Report December 31, 2016 PIMCO Variable Insurance Trust Share Classes Institutional M Administrative Advisor PIMCO All Asset Portfolio

Table of Contents Page Chairman s Letter 2 Important Information About the PIMCO All Asset Portfolio 4 Portfolio Summary 7 Expense Example 8 Financial Highlights 10 Statement of Assets and Liabilities 12 Statement of Operations 13 Statements of Changes in Net Assets 14 Schedule of Investments 15 Notes to Financial Statements 17 Report of Independent Registered Public Accounting Firm 31 Glossary 32 Federal Income Tax Information 33 Management of the Trust 34 Privacy Policy 36 Approval of Investment Advisory Contract and Other Agreements 37 This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the Trust ) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman s Letter Dear PIMCO Variable Insurance Trust Shareholder, Please find enclosed the Annual Report for the PIMCO Variable Insurance Trust covering the twelve-month reporting period ended December 31, 2016. The following pages contain specific details about the Portfolio s investment performance and a discussion of the factors that most affected performance over the reporting period. In the first quarter of the reporting period, global growth concerns in the midst of uncertainty from China, falling commodity prices and questions about the efficacy of central bank policies sparked a sell-off in risk assets. Despite elevated volatility in financial markets, the fundamental backdrop remained mostly intact and supportive central banks helped reignite risk appetite in part with calming rhetoric and actions. The European Central Bank ( ECB ) announced additional easing measures in Europe, with a focus on credit expansion. Also, concerns about global influences and financial conditions kept the Federal Reserve ( Fed ) on hold after its December 2015 interest rate hike, suggesting a more dovish tilt with a tolerance for overshooting their inflation target. In June 2016, the unexpected outcome of the U.K. Brexit referendum dominated headlines and market movements. Volatility rose as a result and sovereign yields rallied significantly, while risk assets generally underperformed. Steadier commodity prices and fiscal stimulus in China helped bolster market sentiment, even as central banks remained on hold ahead of the Brexit referendum. Softer-than-expected employment data in the U.S. pushed market expectations for the next Fed interest rate hike further out into the future, with the Fed continuing to hold rates steady through the end of November. Leading up to the November 8 th U.S. presidential election, investors generally shook off the surprising result of the Brexit referendum, along with a host of political developments including new leadership in the U.K. and Brazil, and a coup attempt in Turkey. In this environment, volatility generally remained low and risk assets rallied. Central banks featured prominently in the headlines as monetary policy concerns (in particular, the longevity of central bank support) lingered beneath the seemingly benign market environment. The Bank of Japan s comprehensive review, inaction by the ECB, and the Fed s solidifying path towards a potential interest rate increase in December 2016 all contributed to sovereign yields generally rising during this period. Still, equities moved higher (U.S. stock indices set record highs), credit spreads tightened, and emerging market assets continued to gain. In the wake of the not expected result of the U.S. election, volatility fell, equities rallied, credit spreads continued to tighten and the U.S. dollar strengthened. In contrast, interest rates rose dramatically as most markets focused on the pro-growth and inflationary potential of fiscal expansion, tax cuts, and deregulation. Part of the rise in interest rates was also due to a sharp increase in inflation expectations. Despite the generally positive risk sentiment towards the end of the reporting period, emerging markets weakened as protectionist rhetoric from the incoming administration weighed on the asset class. Finally, the ECB at its December 8 th meeting opted to leave its main policy rate unchanged and announced an expansion of its Quantitative Easing program to exceed $2.4 trillion by the end of 2017. And on December 14 th, the Fed raised its key lending rate, the Federal Funds Rate, by 0.25% to a range of 0.50%-0.75%, representing their second rate increase in ten years. Highlights of the financial markets during the twelve-month fiscal reporting period include: U.S. Treasuries, as represented by the Bloomberg Barclays U.S. Treasury Index, returned 1.04% for the reporting period. Yields rose across the U.S. Treasury yield curve in reaction to the Fed s interest rate increases, rising concern over inflation and strong investor risk appetite. The benchmark ten-year U.S. Treasury note yielded 2.45% at the end of the reporting period, up from 2.27% on December 31, 2015. The Bloomberg Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 2.65% for the reporting period. U.S. Treasury Inflation-Protected Securities ( TIPS ), as represented by the Bloomberg Barclays U.S. TIPS Index, returned 4.68% over the reporting period. U.S. TIPS outpaced nominal U.S. Treasuries over the reporting period as inflation expectations moved higher alongside oil prices and in response to the surprise U.S. presidential election result. 2 PIMCO VARIABLE INSURANCE TRUST

Diversified commodities, as represented by the Bloomberg Commodity Index Total Return, returned 11.77% over the reporting period. Prices on broad commodities rebounded, led higher primarily by energy and metal prices. Crude oil prices rose markedly after reaching multi-year lows in January 2016, driven higher by continued rebalancing of supply and demand as well as news of a potential OPEC production cut. Within precious metals, gold prices were the beneficiary of strong safe-haven demand over the first half of the reporting period before losing ground to end the period due to rising U.S. interest rates and a stronger U.S. dollar. Base metal prices posted strong gains, most notably toward the end of the period as the U.S. presidential election result fueled speculation of rising demand stemming from increased U.S. infrastructure spending. Agency mortgage-backed securities ( MBS ), as represented by the Bloomberg Barclays U.S. MBS Fixed Rate Index, returned 1.67% over the reporting period and underperformed like-duration U.S. Treasuries. Non-Agency MBS prices were higher and spreads tightened, as the sector benefited from favorable technicals and continued gradual improvement in U.S. housing fundamentals. Positive representation and warranty settlement developments also benefited the sector. U.S. investment grade credit, as represented by the Bloomberg Barclays U.S. Credit Index, returned 5.63% over the reporting period, as continued monetary policy support from global central banks and strong supply/demand technicals supported spread tightening. Developed market global high yield bonds, as measured by the BofA Merrill Lynch Developed Markets High Yield Constrained Index (USD Hedged), returned 13.65% over the reporting period. Performance was driven by the recovery in the commodity sectors, as well as triple-c outperformance alongside the broad risk rally. Meanwhile, high yield bond mutual funds saw strong inflows, as investors continued to seek higher yielding instruments. Emerging market ( EM ) external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned 10.19% over the reporting period. EM local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned 9.94% over the reporting period. Improving domestic economic fundamentals and strong inflows into the asset class served as broad tailwinds for EM external and local currency debt performance. Elevated uncertainty in the wake of the U.S. election, particularly surrounding global trade and monetary policy, weighed on performance at the end of the reporting period. U.S. equities, as represented by the S&P 500 Index, returned 11.96% over the reporting period. EM equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), returned 11.19% over the same period. Developed market equities outside the U.S., as represented by the MSCI EAFE Net Dividend Index (USD Unhedged), returned 1.00% over the reporting period. Thank you once again for the trust you have placed in us. We value your commitment and will continue to work diligently to meet your broad investment and investment solution needs. Sincerely, Brent R. Harris Chairman of the Board, PIMCO Variable Insurance Trust February 17, 2017 Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index. ANNUAL REPORT DECEMBER 31, 2016 3

Important Information About the PIMCO All Asset Portfolio PIMCO Variable Insurance Trust (the Trust ) is an open-end management investment company currently consisting of nineteen separate investment portfolios, including the PIMCO All Asset Portfolio (the Portfolio ). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies ( Variable Contracts ). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context. The Portfolio is a fund of funds, which is a term used to describe mutual funds that pursue their investment objective by investing in other mutual funds instead of investing directly in stocks or bonds of other issuers. Under normal circumstances, the Portfolio invests substantially all of its assets in Institutional Class or, as applicable, Class M shares of any funds of the PIMCO Funds and PIMCO Equity Series, affiliated open-end investment companies, except funds of funds, and shares of any actively-managed funds of the PIMCO ETF Trust, an affiliated investment company (collectively, Underlying PIMCO Funds ). The cost of investing in these Funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. In an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed-income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that Fund management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates. As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are near historically low levels. As such, bond funds may currently face an increased exposure to the risks associated with a rising interest rate environment. This is especially true as the Fed ended its quantitative easing program in October 2014 and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to make markets. Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets, or negatively impact the Portfolio s performance, or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which among other things, could further reduce the net assets of the Portfolio. The Portfolio may be subject to various risks as described in the Portfolio s prospectus. Some of these risks may include, but are not limited to, the following: allocation risk, fund of funds risk, market trading risk, municipal project-specific risk, municipal bond risk, interest rate risk, call risk, credit risk, high yield risk, distressed company risk, market risk, issuer risk, liquidity risk, derivatives risk, futures contract risk, model risk, commodity risk, equity risk, mortgage-related and other asset-backed securities risk, foreign (non-u.s.) investment risk, real estate risk, emerging markets risk, sovereign debt risk, currency risk, leveraging risk, smaller company risk, issuer non-diversification risk, management risk, short sale risk, tax risk, subsidiary risk, value investing risk, arbitrage risk and convertible securities risk. A complete description of these and other risks is contained in the Portfolio s prospectus. An Underlying PIMCO Fund may use derivative instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, leverage risk, management risk and the risk that the Underlying PIMCO Fund may not be able to close out a position when it would be most advantageous to do so. Changes in regulation relating to a mutual fund s use of derivatives and related instruments could potentially limit or impact the Portfolio s ability to invest in derivatives, limit the Portfolio s ability to employ certain strategies that use derivatives and/or adversely affect the value or performance of derivatives and the Portfolio. Certain derivative transactions may have a leveraging effect on an Underlying PIMCO Fund. For example, a small investment in a derivative instrument may have a significant impact on an Underlying PIMCO Fund s exposure to interest rates, currency exchange rates or other investments. As a result, a relatively small price movement in an asset, instrument or component of the index underlying a derivative instrument may cause an immediate and substantial loss or gain in the Underlying PIMCO Fund, which translates into heightened volatility for the Portfolio. An Underlying PIMCO Fund may engage in such transactions regardless of whether the Underlying PIMCO Fund owns the asset, instrument or components of the index underlying the derivative instrument. An Underlying PIMCO Fund may invest a significant portion of its assets in these types of instruments. If it does, the Underlying PIMCO Fund s investment exposure could far exceed the value of its portfolio securities and its investment performance could be primarily dependent upon securities it does not own. An Underlying PIMCO Fund s 4 PIMCO VARIABLE INSURANCE TRUST

investment in foreign (non-u.s.) securities may entail risk due to foreign (non-u.s.) economic and political developments; this risk may be increased when investing in emerging markets. For example, if an Underlying PIMCO Fund invests in emerging market debt, it may face increased exposure to interest rate, liquidity, volatility, and redemption risk due to the specific economic, political, geographical, or legal background of the foreign (non-u.s.) issuer. High yield bonds typically have a lower credit rating than other bonds. Lower-rated bonds generally involve a greater risk to principal than higher-rated bonds. Further, markets for lower-rated bonds are typically less liquid than for higher-rated bonds, and public information is usually less abundant in markets for lower-rated bonds. Thus, high yield investments increase the chance that the Portfolio will lose money. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. Mortgage-related and asset-backed securities represent interests in pools of mortgages or other assets such as consumer loans or receivables. As a general matter, mortgage-related and asset-backed securities are subject to interest rate risk, extension risk, prepayment risk, and credit risk. These risks largely stem from the fact that returns on mortgage-related and asset-backed securities depend on the ability of the underlying assets to generate cash flow. The geographical classification of foreign (non-u.s.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security s country of incorporation may be different from its country of economic exposure. On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance for Institutional Class, Class M and Advisor Class shares, if applicable, may be higher or lower based on each class s expense ratios. The Portfolio measures its performance against a broad-based securities market index ( benchmark index ). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio s diversification status as of period end: Portfolio Institutional Administrative Advisor Diversification Portfolio Name Inception Class Class M Class Class Status PIMCO All Asset Portfolio 04/30/03 01/31/06 04/30/04 04/30/03 04/30/04 Diversified An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation ( FDIC ) or any other government agency. It is possible to lose money on investments in the Portfolio. The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio s prospectus nor summary prospectus, the Trust s Statement of Additional Information ( SAI ), any contracts filed as exhibits to the Trust s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust s then-current prospectus or SAI. PIMCO has adopted written proxy voting policies and procedures ( Proxy Policy ) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent ANNUAL REPORT DECEMBER 31, 2016 5

Important Information About the PIMCO All Asset Portfolio (Cont.) twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio s website at pvit.pimco-funds.com, and on the Securities and Exchange Commission s ( SEC ) website at www.sec.gov. The Portfolio files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Trust s Form N-Q is available on the SEC s website at www.sec.gov and may be reviewed and copied at the SEC s Public Reference Room in Washington, D.C., and is available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio s website at pvit.pimco-funds.com. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Trust is distributed by PIMCO Investments LLC, 1633 Broadway, New York, New York 10019. 6 PIMCO VARIABLE INSURANCE TRUST

PIMCO All Asset Portfolio Cumulative Returns Through December 31, 2016 (in thousands) $30.0 25.0 20.0 15.0 10.0 5.0 0 04/03 02/10 12/16 SECONDARY INDEX $25,501 ADMINISTRATIVE CLASS $20,888 INDEX $16,656 $10,000 invested at the end of the month when the Portfolio s Administrative Class commenced operations. Average Annual Total Return for the period ended December 31, 2016 Top 10 Holdings as of 12/31/2016 1 PIMCO Emerging Markets Currency Fund 13.0% PIMCO RAE Low Volatility PLUS EMG Fund 10.7% PIMCO Income Fund 7.6% PIMCO Emerging Local Bond Fund 7.0% PIMCO RAE Worldwide Long/ Short PLUS Fund 5.7% PIMCO RAE Low Volatility PLUS International Fund 5.4% PIMCO High Yield Spectrum Fund 4.6% PIMCO RAE Fundamental Emerging Markets Fund 4.6% PIMCO CommoditiesPLUS Strategy Fund 3.6% PIMCO RAE Fundamental PLUS EMG Fund 3.4% 1 % of Investments, at value. Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any. 1 Year 5 Years 10 Years Inception PIMCO All Asset Portfolio Institutional Class 13.08% 3.69% 4.43% 4.40% PIMCO All Asset Portfolio Class M 12.59% 3.23% 3.96% 4.93% PIMCO All Asset Portfolio Administrative Class 12.93% 3.54% 4.28% 5.54% PIMCO All Asset Portfolio Advisor Class 12.90% 3.43% 4.18% 5.15% Bloomberg Barclays U.S. TIPS: 1-10 Year Index ± 4.01% 0.70% 3.75% 3.80% / Consumer Price Index + 500 Basis Points ±± 7.10% 6.35% 6.81% 7.08% / All Portfolio returns are net of fees and expenses. For class inception dates please refer to the Important information. / Average annual total return since 04/30/2003. ± Bloomberg Barclays U.S. TIPS: 1-10 Year Index is an unmanaged market index comprised of U.S. Treasury Inflation-Protected Securities having a maturity of at least 1 year and less than 10 years. ±± CPI + 500 Basis Points benchmark is created by adding 5% to the annual percentage change in the Consumer Price Index ( CPI ). This index reflects seasonally adjusted returns. The Consumer Price Index is an unmanaged index representing the rate of inflation of the U.S. consumer prices as determined by the U.S. Bureau of Labor Statistics. There can be no guarantee that the CPI or other indexes will reflect the exact level of inflation at any given time. It is not possible to invest directly in an unmanaged index. Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Portfolio and the index. For performance current to the most recent month-end, visit http://pvit.pimco-funds.com. The Portfolio s total annual operating expense ratio as stated in the Portfolio s current prospectus, which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), as supplemented, is 1.255% for Institutional Class shares, 1.705% for Class M shares, 1.405% for Administrative Class shares, and 1.505% for Advisor Class shares. Details regarding any Portfolio s operating expenses can be found in the Portfolio s prospectus. Investment Objective and Strategy Overview PIMCO All Asset Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the PIMCO Funds and PIMCO Equity Series, affiliated openend investment companies, except other funds of funds, or shares of any actively-managed funds of the PIMCO ETF Trust, an affiliated investment company (collectively, Underlying PIMCO Funds ). The Portfolio invests its assets in shares of the Underlying PIMCO Funds and does not invest directly in stocks or bonds of other issuers. Research Affiliates, LLC, the Portfolio s asset allocation sub-adviser, determines how the Portfolio allocates and reallocates its assets among the Underlying PIMCO Funds. In doing so, the asset allocation sub-adviser seeks concurrent exposure to a broad spectrum of asset classes. The Portfolio will not invest in the Short Strategy Underlying PIMCO Funds, which seek to gain a negative exposure to an asset class such as equities or commodities. In addition to investing in the Underlying PIMCO Funds, at the discretion of PIMCO and without shareholder approval, the Portfolio may invest in additional Underlying PIMCO Funds created in the future. Portfolio strategies may change from time to time. Please refer to the Portfolio s current prospectus for more information regarding the Portfolio s strategy. Portfolio Insights The following impacted performance during the reporting period:» Exposure to emerging market equities, primarily through the PIMCO RAE Low Volatility PLUS EMG Fund, the PIMCO RAE Fundamental PLUS EMG Fund and the PIMCO RAE Fundamental Emerging Markets Fund, benefited performance, as these Underlying PIMCO Funds gained value.» Credit exposure, primarily through the PIMCO Income Fund, the PIMCO High Yield Spectrum Fund and the PIMCO High Yield Fund, benefited performance, as these Underlying PIMCO Funds gained value.» Exposure to emerging market bonds and currencies, primarily through the PIMCO Emerging Local Bond Fund and the PIMCO Emerging Markets Currency Fund, benefited performance, as these Underlying PIMCO Funds gained value.» Allocations to alternative strategies, primarily through the PIMCO RAE Worldwide Long/ Short PLUS Fund, benefited performance, as this Underlying PIMCO Fund gained value.» Commodities exposure, primarily through the PIMCO CommoditiesPLUS Strategy Fund and the PIMCO CommodityRealReturn Strategy Fund, benefited performance, as these Underlying PIMCO Funds gained value.» Exposure to developed ex-u.s. equities, primarily through the PIMCO StocksPLUS International Fund (U.S. Dollar-Hedged), the PIMCO RAE Low Volatility PLUS International Fund and the PIMCO RAE Fundamental PLUS International Fund, benefited performance, as these Underlying PIMCO Funds gained value. ANNUAL REPORT DECEMBER 31, 2016 7

Expense Example PIMCO All Asset Portfolio Example As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2016 to December 31, 2016 unless noted otherwise in the table and footnotes below. Actual Expenses The information in the table under the heading Actual provides information about actual account values and actual expenses. You may use the information in these columns, 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 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled Expenses Paid During Period to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes The information in the table under the heading Hypothetical (5% return before expenses) provides information about hypothetical account values and hypothetical expenses based on the Portfolio s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio 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 the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios. 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 information under the heading Hypothetical (5% return before expenses) is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher. Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense. Actual Hypothetical (5% return before expenses) Beginning Account Value (07/01/16) Ending Account Value (12/31/16) Expenses Paid During Period* Beginning Account Value (07/01/16) Ending Account Value (12/31/16) Expenses Paid During Period* Net Annualized Expense Ratio** Institutional Class $ 1,000.00 $ 1,034.60 $ 1.50 $ 1,000.00 $ 1,023.94 $ 1.49 0.29% Class M 1,000.00 1,031.70 3.82 1,000.00 1,021.65 3.80 0.74 Administrative Class 1,000.00 1,034.10 2.27 1,000.00 1,023.17 2.26 0.44 Advisor Class 1,000.00 1,034.10 2.79 1,000.00 1,022.67 2.78 0.54 * Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 186/366 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses. ** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers can be found in Note 6 in the Notes to Financial Statements. 8 PIMCO VARIABLE INSURANCE TRUST

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Financial Highlights PIMCO All Asset Portfolio Investment Operations Less Distributions (b) Selected Per Share Data for the Year Ended: Net Asset Value Beginning of Year Net Investment Income (a) Net Realized/ Unrealized Gain (Loss) Total From Net Investment Income Tax Basis Return of Capital Institutional Class 12/31/2016 $ 9.19 $ 0.24 $ 0.96 $ 1.20 $ (0.26) $ (0.02) $ (0.28) 12/31/2015 10.47 0.33 (1.26) (0.93) (0.34) (0.01) (0.35) 12/31/2014 10.98 0.47 (0.38) 0.09 (0.60) 0.00 (0.60) 12/31/2013 11.48 0.50 (0.46) 0.04 (0.54) 0.00 (0.54) 12/31/2012 10.52 0.77 0.80 1.57 (0.61) 0.00 (0.61) Class M 12/31/2016 9.25 0.19 0.97 1.16 (0.21) (0.02) (0.23) 12/31/2015 10.53 0.30 (1.27) (0.97) (0.30) (0.01) (0.31) 12/31/2014 11.04 0.42 (0.38) 0.04 (0.55) 0.00 (0.55) 12/31/2013 11.54 0.48 (0.50) (0.02) (0.48) 0.00 (0.48) 12/31/2012 10.52 0.60 0.92 1.52 (0.50) 0.00 (0.50) Administrative Class 12/31/2016 9.10 0.22 0.95 1.17 (0.24) (0.02) (0.26) 12/31/2015 10.36 0.32 (1.24) (0.92) (0.33) (0.01) (0.34) 12/31/2014 10.88 0.45 (0.39) 0.06 (0.58) 0.00 (0.58) 12/31/2013 11.38 0.51 (0.49) 0.02 (0.52) 0.00 (0.52) 12/31/2012 10.43 0.65 0.89 1.54 (0.59) 0.00 (0.59) Advisor Class 12/31/2016 9.19 0.21 0.97 1.18 (0.23) (0.02) (0.25) 12/31/2015 10.47 0.31 (1.26) (0.95) (0.32) (0.01) (0.33) 12/31/2014 10.98 0.43 (0.37) 0.06 (0.57) 0.00 (0.57) 12/31/2013 11.48 0.48 (0.47) 0.01 (0.51) 0.00 (0.51) 12/31/2012 10.49 0.62 0.92 1.54 (0.55) 0.00 (0.55) Total (a) (b) Per share amounts based on average number of shares outstanding during the year. The tax characterization of distributions is determined in accordance with federal income tax regulations. See Note 2 in the Notes to Financial Statements for more information. 10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Ratios/Supplemental Data Ratios to Average Net Assets Net Asset Value End of Year Total Return Net Assets End of Year (000s) Expenses Expenses Excluding Waivers Net Investment Income Portfolio Turnover Rate $ 10.11 13.08% $ 5,726 0.275% 0.425% 2.43% 67% 9.19 (8.95) 4,811 0.285 0.425 3.25 41 10.47 0.72 9,688 0.275 0.425 4.24 98 10.98 0.43 10,082 0.295 0.425 4.39 61 11.48 15.11 12,252 0.345 0.425 6.86 26 10.18 12.59 65,033 0.725 0.875 1.91 67 9.25 (9.32) 68,206 0.735 0.875 2.88 41 10.53 0.24 86,496 0.725 0.875 3.70 98 11.04 (0.10) 105,517 0.745 0.875 4.24 61 11.54 14.64 103,612 0.795 0.875 5.33 26 10.01 12.93 537,663 0.425 0.575 2.23 67 9.10 (8.99) 537,330 0.435 0.575 3.15 41 10.36 0.47 722,608 0.425 0.575 4.01 98 10.88 0.27 824,590 0.445 0.575 4.51 61 11.38 14.95 829,972 0.495 0.575 5.81 26 10.12 12.90 226,099 0.525 0.675 2.12 67 9.19 (9.19) 226,532 0.535 0.675 3.02 41 10.47 0.46 328,716 0.525 0.675 3.86 98 10.98 0.11 406,398 0.545 0.675 4.25 61 11.48 14.81 478,073 0.595 0.675 5.58 26 See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2016 11

Statement of Assets and Liabilities PIMCO All Asset Portfolio (Amounts in thousands, except per share amounts) December 31, 2016 Assets: Investments, at value Investments in securities* $ 1,078 Investments in Affiliates 835,115 Receivable for investments in Affiliates sold 2,332 Receivable for Portfolio shares sold 91 Dividends receivable from Affiliates 1,646 Reimbursement receivable from PIMCO 83 Total Assets 840,345 Liabilities: Payable for investments in Affiliates purchased $ 4,984 Payable for Portfolio shares redeemed 355 Accrued investment advisory fees 131 Accrued supervisory and administrative fees 187 Accrued distribution fees 77 Accrued servicing fees 72 Other liabilities 18 Total Liabilities 5,824 Net Assets $ 834,521 Net Assets Consist of: Paid in capital $ 1,069,069 Accumulated undistributed net realized (loss) (227,836) Net unrealized (depreciation) (6,712) Net Assets $ 834,521 Net Assets: Institutional Class $ 5,726 Class M 65,033 Administrative Class 537,663 Advisor Class 226,099 Shares Issued and Outstanding: Institutional Class 566 Class M 6,387 Administrative Class 53,718 Advisor Class 22,350 Net Asset Value Per Share Outstanding: Institutional Class $ 10.11 Class M 10.18 Administrative Class 10.01 Advisor Class 10.12 Cost of investments in securities $ 1,078 Cost of investments in Affiliates $ 841,827 * Includes repurchase agreements of: $ 1,078 12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO All Asset Portfolio (Amounts in thousands) Year Ended December 31, 2016 Investment Income: Dividends from Investments in Affiliates $ 21,971 Total Income 21,971 Expenses: Investment advisory fees 1,448 Supervisory and administrative fees 2,069 Distribution and/or servicing fees - Class M 294 Servicing fees - Administrative Class 794 Distribution and/or servicing fees - Advisor Class 570 Trustee fees 18 Interest expense 1 Total Expenses 5,194 Waiver and/or Reimbursement by PIMCO (1,234) Net Expenses 3,960 Net Investment Income 18,011 Net Realized Gain (Loss): Investments in Affiliates (58,374) Net capital gain distributions received from Affiliate investments 555 Net Realized (Loss) (57,819) Net Change in Unrealized Appreciation: Investments in Affiliates 138,914 Net Change in Unrealized Appreciation 138,914 Net Increase in Net Assets Resulting from Operations $ 99,106 See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2016 13

Statements of Changes in Net Assets PIMCO All Asset Portfolio (Amounts in thousands ) (Decrease) in Net Assets from: Year Ended December 31, 2016 Year Ended December 31, 2015 Operations: Net investment income $ 18,011 $ 31,478 Net realized (loss) (57,819) (25,647) Net change in unrealized appreciation (depreciation) 138,914 (94,915) Net Increase (Decrease) in Net Assets Resulting from Operations 99,106 (89,084) Distributions to Shareholders: From net investment income Institutional Class (137) (247) Class M (1,302) (2,185) Administrative Class (12,600) (19,826) Advisor Class (5,076) (8,100) Tax basis return of capital Institutional Class (13) (9) Class M (165) (89) Administrative Class (1,334) (729) Advisor Class (575) (317) Total Distributions (a) (21,202) (31,502) Portfolio Share Transactions: Net (decrease) resulting from Portfolio share transactions** (80,262) (190,043) Total (Decrease) in Net Assets (2,358) (310,629) Net Assets: Beginning of year 836,879 1,147,508 End of year* $ 834,521 $ 836,879 * Including undistributed (overdistributed) net investment income of: $ 0 $ 0 A zero balance may reflect actual amounts rounding to less than one thousand. ** See Note 10 in the Notes to Financial Statements. (a) The tax characterization of distributions is determined in accordance with federal income tax regulations. See Note 2 in the Notes to Financial Statements for more information. 14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO All Asset Portfolio December 31, 2016 MARKET VALUE (000S) INVESTMENTS IN SECURITIES 0.1% SHORT-TERM INSTRUMENTS 0.1% REPURCHASE AGREEMENTS (b) 0.1% $ 1,078 Total Short-Term Instruments (Cost $1,078) 1,078 Total Investments in Securities (Cost $1,078) 1,078 SHARES INVESTMENTS IN AFFILIATES 100.1% MUTUAL FUNDS (a) 99.5% PIMCO CommoditiesPLUS Strategy Fund 4,668,612 30,066 PIMCO CommodityRealReturn Strategy Fund 708,918 5,076 PIMCO Diversified Income Fund 442,225 4,670 PIMCO Emerging Local Bond Fund 8,380,447 58,244 PIMCO Emerging Markets Currency Fund 12,673,216 108,863 PIMCO Extended Duration Fund 1,725,480 12,665 PIMCO High Yield Fund 2,343,678 20,648 PIMCO High Yield Spectrum Fund 3,968,231 38,849 PIMCO Income Fund 5,270,720 63,565 PIMCO Investment Grade Corporate Bond Fund 2,350,959 24,003 PIMCO Long Duration Total Return Fund 954,855 9,950 PIMCO Long-Term Credit Fund 125,844 1,438 SHARES MARKET VALUE (000S) PIMCO Long-Term U.S. Government Fund 3,849,781 $ 22,752 PIMCO Low Duration Fund 2,098,987 20,675 PIMCO Mortgage Opportunities Fund 572,949 6,239 PIMCO RAE Fundamental Advantage PLUS Fund 850,839 8,789 PIMCO RAE Fundamental Emerging Markets Fund 4,007,949 38,797 PIMCO RAE Fundamental PLUS EMG Fund 3,096,033 28,452 PIMCO RAE Fundamental PLUS International Fund 2,520,252 21,246 PIMCO RAE Low Volatility PLUS EMG Fund 10,478,341 89,590 PIMCO RAE Low Volatility PLUS Fund 186,667 2,242 PIMCO RAE Low Volatility PLUS International Fund 4,675,780 45,308 PIMCO RAE Worldwide Fundamental Advantage PLUS Fund 974,759 9,553 PIMCO RAE Worldwide Long/ Short PLUS Fund 4,865,551 47,342 PIMCO Real Return Asset Fund 636,224 5,179 PIMCO Real Return Fund 2,524,060 27,563 PIMCO RealEstateRealReturn Strategy Fund 1,338,018 10,958 PIMCO Senior Floating Rate Fund 1,998,562 19,866 PIMCO StocksPLUS International Fund (U.S. Dollar-Hedged) 3,145,423 24,157 PIMCO StocksPLUS International Fund (Unhedged) 236,590 1,370 PIMCO Total Return Fund 1,971,755 19,777 SHARES MARKET VALUE (000S) PIMCO TRENDS Managed Futures Strategy Fund 230,298 $ 2,185 Total Mutual Funds (Cost $836,550) 830,077 EXCHANGE-TRADED FUNDS 0.1% PIMCO Global Advantage Inflation-Linked Bond Active Exchange- Traded Fund 20,000 837 Total Exchange-Traded Funds (Cost $1,076) 837 SHORT-TERM INSTRUMENTS 0.5% MUTUAL FUNDS 0.5% PIMCO Government Money Market Fund (a) 4,100,097 4,100 CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 0.0% PIMCO Short-Term Floating NAV Portfolio III 10,226 101 Total Short-Term Instruments (Cost $4,201) 4,201 Total Investments in Affiliates (Cost $841,827) 835,115 Total Investments 100.2% (Cost $842,905) $ 836,193 Other Assets and Liabilities, net (0.2)% (1,672) Net Assets 100.0% $ 834,521 NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*): * A zero balance may reflect actual amounts rounding to less than one thousand. (a) Institutional Class Shares of each Fund. BORROWINGS AND OTHER FINANCING TRANSACTIONS (b) REPURCHASE AGREEMENTS: Repurchase Agreements, at Value Repurchase Agreement Proceeds to be Received (1) Counterparty Lending Rate Settlement Date Maturity Date Principal Amount Collateralized By Collateral (Received) SSB 0.010% 12/30/2016 01/03/2017 $ 1,078 U.S. Treasury Notes 1.000% due 05/15/2018 (2) $ (1,101) $ 1,078 $ 1,078 Total Repurchase Agreements $ (1,101) $ 1,078 $ 1,078 (1) Includes accrued interest. (2) Collateral is held in custody by the counterparty. See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2016 15

Schedule of Investments PIMCO All Asset Portfolio (Cont.) December 31, 2016 BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received) as of December 31, 2016: Counterparty Repurchase Agreement Proceeds to be Received Payable for Reverse Repurchase Agreements Payable for Sale-Buyback Transactions Total Borrowings and Other Financing Transactions Collateral (Received) Net Exposure (3) Global/Master Repurchase Agreement SSB $ 1,078 $ 0 $ 0 $ 1,078 $ (1,101) $ (23) Total Borrowings and Other Financing Transactions $ 1,078 $ 0 $ 0 (3) Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 5, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. FAIR VALUE MEASUREMENTS The following is a summary of the fair valuations according to the inputs used as of December 31, 2016 in valuing the Portfolio s assets and liabilities: Category and Subcategory Level 1 Level 2 Level 3 Fair Value at 12/31/2016 Investments in Securities, at Value Short-Term Instruments Repurchase Agreements $ 0 $ 1,078 $ 0 $ 1,078 $ 0 $ 1,078 $ 0 $ 1,078 Investments in Affiliates, at Value Mutual Funds 830,077 0 0 830,077 Exchange-Traded Funds 837 0 0 837 Short-Term Instruments Mutual Funds 4,100 0 0 4,100 Central Funds Used for Cash Management Purposes 101 0 0 101 $ 835,115 $ 0 $ 0 $ 835,115 Total Investments $ 835,115 $ 1,078 $ 0 $ 836,193 There were no significant transfers between Levels 1, 2, or 3 during the period ended December 31, 2016. 16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements December 31, 2016 1. ORGANIZATION PIMCO Variable Insurance Trust (the Trust ) was established as a Delaware business trust on October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the Act ), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Class M, Administrative Class and Advisor Class shares of the PIMCO All Asset Portfolio (the Portfolio ) offered by the Trust. Pacific Investment Management Company LLC ( PIMCO ) serves as the investment adviser (the Adviser ) for the Portfolio. Research Affiliates, LLC ( Research Affiliates ) serves as the asset allocation subadviser to the Portfolio. The Portfolio may invest substantially all of its assets in Institutional Class, or as applicable, Class M shares of any funds of the PIMCO Funds and PIMCO Equity Series, except other fund of funds, and shares of any actively-managed funds of the PIMCO ETF Trust (the Underlying PIMCO Funds ). The Portfolio s investment in a particular Underlying PIMCO Fund normally will not exceed 50% of its total assets. The Portfolio s combined investments in the Equity-Related Underlying PIMCO Funds (as set forth in the Portfolio s current prospectus) normally will not exceed 50% of its total assets. In addition, the Portfolio s combined investments in the Inflation-Related Underlying PIMCO Funds (as set forth in the Portfolio s current prospectus), which seek to gain exposure to an asset class such as U.S. Treasury Inflation-Protected Securities ( TIPS ), commodities, or real estate, normally will not exceed 75% of its total assets. The Portfolio s assets are not allocated according to a predetermined blend of shares of the Underlying PIMCO Funds. Instead, when making allocation decisions among the Underlying PIMCO Funds, the Portfolio s asset allocation sub-adviser considers various quantitative and qualitative data relating to the U.S. and foreign economies and securities markets. Such data includes projected growth trends in the U.S. and foreign economies, forecasts for interest rates and the relationship between short and long-term interest rates (yield curve), current and projected trends in inflation, relative valuation levels in the equity and fixed income markets and various segments within those markets, the outlook and projected growth of various industrial sectors, information relating to business cycles, borrowing needs and the cost of capital, political trends data relating to trade balances and labor information. The Portfolio s asset allocation sub-adviser has the flexibility to reallocate the Portfolio s assets among any or all of the asset class exposures represented by the Underlying PIMCO Funds based on its ongoing analyses of the equity, fixed income and commodity markets. While these analyses are performed daily, material shifts in asset class exposures typically take place over longer periods of time. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America ( U.S. GAAP ). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. (a) Securities Transactions and Investment Income Securities transactions are recorded as of the trade date for financial reporting purposes. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the exdividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. (b) Multiclass Operations Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value ( NAV ) of a class of the Portfolio s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares. ANNUAL REPORT DECEMBER 31, 2016 17