THE HARTFORD FINANCIAL SERVICES GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) F-49 5.
Investments and Derivative Instruments (continued) Collateral Arrangements The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral.
As of December 31, 2011 and 2010, collateral pledged having a fair value of $1.1 billion and $790, respectively, was included in fixed maturities, AFS, in the Consolidated Balance Sheets.
From time to time, the Company enters into secured borrowing arrangements as a means to increase net investment income.
The Company received cash collateral of $33 as of December 31, 2011 and 2010.
The following table presents the classification and carrying amount of loaned securities and derivative instruments collateral pledged.
## Table 0 ##
As of December 31, 2011 and 2010, the Company had accepted collateral with a fair value of $2.6 billion and $1.5 billion, respectively, of which $2.0 billion and $1.1 billion, respectively, was cash collateral which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other assets and other liabilities.
The Company is only permitted by contract to sell or repledge the noncash collateral in the event of a default by the counterparty.
As of December 31, 2011 and 2010, noncash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.
Securities on Deposit with States The Company is required by law to deposit securities with government agencies in states where it conducts business.
As of December 31, 2011 and 2010, the fair value of securities on deposit was approximately $1.6 billion and $1.4 billion, respectively
THE HARTFORD FINANCIAL SERVICES GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) F-53 7.
Deferred Policy Acquisition Costs and Present Value of Future Profits (continued) Results Changes in the DAC balance are as follows:
## Table 1 ##
[1] The most significant contributors to the Unlock charge recorded during the year ended December 31, 2011 were assumption changes which reduced expected future gross profits including additional costs associated with implementing the Japan hedging strategy and the U. S.  variable annuity macro hedge program, as well as actual separate account returns below our aggregated estimated return.
The most significant contributors to the Unlock benefit recorded during the year ended December 31, 2010 were actual separate account returns being above our aggregated estimated return.
Also included in the benefit are assumption updates related to benefits from withdrawals and lapses, offset by hedging, annuitization estimates on Japan products, and long-term expected rate of return updates.
The most significant contributors to the Unlock charge recorded during the year ended December 31, 2009 were the results of actual separate account returns being significantly below our aggregated estimated return for the first quarter of 2009, partially offset by actual returns being greater than our aggregated estimated return for the period from April 1, 2009 to December 31, 2009.
[2] The most significant contributor to the adjustments was the effect of declining interest rates, resulting in unrealized gains on securities classified in AOCI.
Other includes a $34 decrease as a result of the disposition of DAC from the sale of the Hartford Investment Canadian Canada in 2010.
[3] For the year ended December 31, 2010 the effect of adopting new accounting guidance for embedded credit derivatives resulted in a decrease to retained earnings and, as a result, a DAC benefit.
In addition, an offsetting amount was recorded in unrealized losses as unrealized losses decreased upon adoption of the new accounting guidance.
For the year ended December 31, 2009 the effect of adopting new accounting guidance for investments other- than- temporarily impaired resulted in an increase to retained earnings and, as a result, a DAC charge.
In addition, an offsetting amount was recorded in unrealized losses as unrealized losses increased upon adoption of the new accounting guidance.
As of December 31, 2011, estimated future net amortization expense of present value of future profits for the succeeding five years is $39, $58, $24, $23 and $22 in 2012, 2013, 2014, 2015 and 2016, respectively.
THE HARTFORD FINANCIAL SERVICES GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) F-60 10.
Sales Inducements Accounting Policy The Company currently offers enhanced crediting rates or bonus payments to contract holders on certain of its individual and group annuity products.
The expense associated with offering a bonus is deferred and amortized over the life of the related contract in a pattern consistent with the amortization of deferred policy acquisition costs.
Amortization expense associated with expenses previously deferred is recorded over the remaining life of the contract.
Consistent with the Unlock, the Company unlocked the amortization of the sales inducement asset.
See Note 7 for more information concerning the Unlock.
Changes in deferred sales inducement activity were as follows for the years ended December 31:
## Table 2 ##
11.
Reserves for Future Policy Benefits and Unpaid Losses and Loss Adjustment Expenses Life Insurance Products Accounting Policy Liabilities for future policy benefits are calculated by the net level premium method using interest, withdrawal and mortality assumptions appropriate at the time the policies were issued.
The methods used in determining the liability for unpaid losses and future policy benefits are standard actuarial methods recognized by the American Academy of Actuaries.
For the tabular reserves, discount rates are based on the Company’s earned investment yield and the morbidity/mortality tables used are standard industry tables modified to reflect the Company’s actual experience when appropriate.
In particular, for the Company’s group disability known claim reserves, the morbidity table for the early durations of claim is based exclusively on the Company’s experience, incorporating factors such as gender, elimination period and diagnosis.
These reserves are computed such that they are expected to meet the Company’s future policy obligations.
Future policy benefits are computed at amounts that, with additions from estimated premiums to be received and with interest on such reserves compounded annually at certain assumed rates, are expected to be sufficient to meet the Company’s policy obligations at their maturities or in the event of an insured’s death.
Changes in or deviations from the assumptions used for mortality, morbidity, expected future premiums and interest can significantly affect the Company’s reserve levels and related future operations and, as such, provisions for adverse deviation are built into the long-tailed liability assumptions.
Liabilities for the Company’s group life and disability contracts, as well as its individual term life insurance policies, include amounts for unpaid losses and future policy benefits.
Liabilities for unpaid losses include estimates of amounts to fully settle known reported claims, as well as claims related to insured events that the Company estimates have been incurred but have not yet been reported.
These reserve estimates are based on known facts and interpretations of circumstances, and consideration of various internal factors including The Hartford’s experience with similar cases, historical trends involving claim payment patterns, loss payments, pending levels of unpaid claims, loss control programs and product mix.
In addition, the reserve estimates are influenced by consideration of various external factors including court decisions, economic conditions and public attitudes.
The effects of inflation are implicitly considered in the reserving process.
Item 6.
SELECTED FINANCIAL DATA (In millions, except for per share data and combined ratios)
## Table 3 ##
Part II - Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Reconciliation of Net Income to Core Earnings

<table><tr><td></td><td>December 31, 2011</td><td>December 31, 2010</td></tr><tr><td>Fixed maturities, AFS</td><td>$1,086</td><td>$823</td></tr><tr><td>Short-term investments</td><td>199</td><td>—</td></tr><tr><td>Total collateral pledged</td><td>$1,285</td><td>$823</td></tr></table>
<table><tr><td></td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Balance, January 1</td><td>$9,857</td><td>$10,686</td><td>$13,248</td></tr><tr><td>Deferred Costs</td><td>2,608</td><td>2,648</td><td>2,853</td></tr><tr><td>Amortization — DAC</td><td>-2,920</td><td>-2,665</td><td>-3,247</td></tr><tr><td>Amortization — DAC from discontinued operations</td><td>—</td><td>-17</td><td>-10</td></tr><tr><td>Amortization — Unlock benefit (charge), pre-tax [1]</td><td>-507</td><td>138</td><td>-1,010</td></tr><tr><td>Adjustments to unrealized gains and losses on securities available-for-sale and other [2]</td><td>-377</td><td>-1,159</td><td>-1,031</td></tr><tr><td>Effect of currency translation</td><td>83</td><td>215</td><td>-39</td></tr><tr><td>Cumulative effect of accounting change, pre-tax [3]</td><td>—</td><td>11</td><td>-78</td></tr><tr><td>Balance, December 31</td><td>$8,744</td><td>$9,857</td><td>$10,686</td></tr></table>
<table><tr><td></td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Balance, beginning of year</td><td>$459</td><td>$438</td><td>$553</td></tr><tr><td>Sales inducements deferred</td><td>20</td><td>31</td><td>59</td></tr><tr><td>Amortization charged to income</td><td>-17</td><td>-8</td><td>-105</td></tr><tr><td>Amortization — Unlock</td><td>-28</td><td>-2</td><td>-69</td></tr><tr><td>Balance, end of year</td><td>$434</td><td>$459</td><td>$438</td></tr></table>
<table><tr><td></td><td>2011</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td> Income Statement Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Earned premiums</td><td>$14,088</td><td>$14,055</td><td>$14,424</td><td>$15,503</td><td>$15,619</td></tr><tr><td>Fee income</td><td>4,750</td><td>4,748</td><td>4,547</td><td>5,103</td><td>5,408</td></tr><tr><td>Net investment income (loss):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Securities available-for-sale and other</td><td>4,272</td><td>4,364</td><td>4,017</td><td>4,327</td><td>5,203</td></tr><tr><td>Equity securities, trading</td><td>-1,359</td><td>-774</td><td>3,188</td><td>-10,340</td><td>145</td></tr><tr><td>Total net investment income (loss)</td><td>2,913</td><td>3,590</td><td>7,205</td><td>-6,013</td><td>5,348</td></tr><tr><td>Net realized capital losses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total other-than-temporary impairment (“OTTI”) losses</td><td>-263</td><td>-852</td><td>-2,191</td><td>-3,964</td><td>-483</td></tr><tr><td>OTTI losses recognized in other comprehensive income</td><td>89</td><td>418</td><td>683</td><td>—</td><td>—</td></tr><tr><td>Net OTTI losses recognized in earnings</td><td>-174</td><td>-434</td><td>-1,508</td><td>-3,964</td><td>-483</td></tr><tr><td>Net realized capital losses, excluding net OTTI losses recognized in earnings</td><td>29</td><td>-177</td><td>-496</td><td>-1,941</td><td>-512</td></tr><tr><td>Total net realized capital gains (losses)</td><td>-145</td><td>-611</td><td>-2,004</td><td>-5,905</td><td>-995</td></tr><tr><td>Other revenues</td><td>253</td><td>267</td><td>261</td><td>249</td><td>243</td></tr><tr><td>Total revenues</td><td>21,859</td><td>22,049</td><td>24,433</td><td>8,937</td><td>25,623</td></tr><tr><td>Benefits, losses and loss adjustment expenses</td><td>14,625</td><td>13,025</td><td>13,831</td><td>14,088</td><td>13,919</td></tr><tr><td>Benefits, losses and loss adjustment expenses — returns credited on internationalvariable annuities</td><td>-1,359</td><td>-774</td><td>3,188</td><td>-10,340</td><td>145</td></tr><tr><td>Amortization of deferred policy acquisition costs and present value of future profits</td><td>3,427</td><td>2,527</td><td>4,257</td><td>4,260</td><td>2,982</td></tr><tr><td>Insurance operating costs and other expenses</td><td>4,398</td><td>4,407</td><td>4,370</td><td>4,448</td><td>4,357</td></tr><tr><td>Interest expense</td><td>508</td><td>508</td><td>476</td><td>343</td><td>263</td></tr><tr><td>Goodwill impairment</td><td>30</td><td>—</td><td>32</td><td>745</td><td>—</td></tr><tr><td>Total benefits, losses and expenses</td><td>21,629</td><td>19,693</td><td>26,154</td><td>13,544</td><td>21,666</td></tr><tr><td>Income (loss) from continuing operations before income taxes</td><td>230</td><td>2,356</td><td>-1,721</td><td>-4,607</td><td>3,957</td></tr><tr><td>Income tax expense (benefit)</td><td>-346</td><td>612</td><td>-838</td><td>-1,848</td><td>1,040</td></tr><tr><td>Income (loss) from continuing operations, net of tax</td><td>576</td><td>1,744</td><td>-883</td><td>-2,759</td><td>2,917</td></tr><tr><td>Income (loss) from discontinued operations, net of tax</td><td>86</td><td>-64</td><td>-4</td><td>10</td><td>32</td></tr><tr><td>Net income (loss)</td><td>662</td><td>1,680</td><td>-887</td><td>-2,749</td><td>2,949</td></tr><tr><td>Preferred stock dividends and accretion of discount</td><td>42</td><td>515</td><td>127</td><td>8</td><td>—</td></tr><tr><td>Net income (loss) available to common shareholders</td><td>$620</td><td>$1,165</td><td>$-1,014</td><td>$-2,757</td><td>$2,949</td></tr><tr><td> Balance Sheet Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Separate account assets</td><td>$143,870</td><td>$159,742</td><td>$150,394</td><td>$130,184</td><td>$199,946</td></tr><tr><td>Total assets</td><td>304,064</td><td>318,346</td><td>307,717</td><td>287,583</td><td>360,361</td></tr><tr><td>Total debt (including capital lease obligations)</td><td>6,216</td><td>6,607</td><td>5,839</td><td>6,221</td><td>4,507</td></tr><tr><td>Separate account liabilities</td><td>143,870</td><td>159,742</td><td>150,394</td><td>130,184</td><td>199,946</td></tr><tr><td>Common equity, excluding AOCI</td><td>21,197</td><td>20,756</td><td>18,217</td><td>16,788</td><td>20,062</td></tr><tr><td>Preferred Stock</td><td>556</td><td>556</td><td>2,960</td><td>—</td><td>—</td></tr><tr><td>AOCI, net of tax</td><td>1,157</td><td>-1,001</td><td>-3,312</td><td>-7,520</td><td>-858</td></tr><tr><td>Total stockholders’ equity</td><td>22,910</td><td>20,311</td><td>17,865</td><td>9,268</td><td>19,204</td></tr><tr><td> Income (loss) from continuing operations, net of tax, available to commonshareholders per common share</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$1.20</td><td>$2.85</td><td>$-2.92</td><td>$-9.02</td><td>$9.22</td></tr><tr><td>Diluted</td><td>1.12</td><td>2.62</td><td>-2.92</td><td>-9.02</td><td>9.14</td></tr><tr><td> Net income (loss) available to common shareholders per common share</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$1.39</td><td>$2.70</td><td>$-2.93</td><td>$-8.99</td><td>$9.32</td></tr><tr><td>Diluted</td><td>1.30</td><td>2.49</td><td>-2.93</td><td>-8.99</td><td>9.24</td></tr><tr><td>Cash dividends declared per common share</td><td>0.40</td><td>0.20</td><td>0.20</td><td>1.91</td><td>2.03</td></tr><tr><td> Other Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenues, excluding net investment income on equity securities, trading</td><td>$23,218</td><td>$22,823</td><td>$21,245</td><td>$19,277</td><td>$25,478</td></tr><tr><td>Unlock benefit (charge), after-tax</td><td>$-530</td><td>$111</td><td>$-1,034</td><td>$-932</td><td>$213</td></tr><tr><td>Total investments, excluding equity securities, trading</td><td>$104,449</td><td>$98,175</td><td>$93,235</td><td>$89,287</td><td>$94,904</td></tr></table>

Question: What's the average of Balance, January 1 of 2011, and Earned premiums of 2010 ?
Answer: 11956