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At December 31, 2012, investments in any person and its af filiates that exceeded 10% of total stockholders’  equity were as follows: 

<img src='content_image/136547.jpg'>

Securities on deposit with various state insurance commissioners amounted to $18.0 million and $21.1 million at December 31, 2012 and 2011, respectively. We also had $172.6 million and $116.4 million (book value) of securities pledged as collateral in accordance with various reinsurance agreements at December 31, 2012 and 2011, respectively. 

## 8. Investment in Affiliates 

On May 3, 2010, Radian Guaranty sold all of its remaining 28.7% equity interest in Sherman for approximately $172.0 million in cash. As a result of the sale, in the second quarter of 2010, we recorded a pre-tax gain of approximately $34.8 million, net of transaction related expenses of $1.3 million and a pre-tax decrease in accumulated comprehensive income of $29.7 million. In addition, we agreed to terminate certain rights, including our right to a future contingent payment from a previous sale of our equity interest in Sherman. 

The following is a rollforward of our investment in Sherman during 2010: 

<img src='content_image/136546.jpg'>

