Capital Raising, page-22

It's been an absolute outrage Jimmy, a complete cockup because of Govt involvement (though I don't imply that business never makes mistakes - almost all my best investments come from the staggering amount of corporate wastefulness, nepotism and mismanagement facilitated by a docile and apathetic "investing" public).
It's not a meritocracy more a totally corrupt and self serving disgusting rule by the rich for the rich (the managerial aristocracy).
Corporate and government body's both are examples of worship of the superfluous - money and power above merit).
Chch is still a fantastic place but it's pretty depressing going down town and seeing a warzone of demolished buildings.
Anyway it's important to note that new buildings in chch are now extremely resilient to earthquakes, it's probably now the safest city in NZ.
EQC has been reformed as evidenced in speedy resolution to kaikoura earthquakes, houses are now "sum insured" if it's a total rebuild you just get cash up to an amount.
These factors combined with a realisation of the risks are reasons why the past return on capital at Tower may not be representative of the future. Having said that I am not buying more at this price either having got in below the terp for a good chunk.
I don't follow QBE but it's good that you ask, it's underperforming relative to its peers. I need to do more research but I suspect QBE at $10.5 is less undervalued but much larger and therefore safer.
That should be accounted for in any valuation which I still haven't done.