You don’t often hear of a subsidiary having a bit of a spat with its parent, but then again you don’t often come across a subsidiary quite as dominant as AAMI. Its parent, Promina, has found itself in a public difference of opinion with AAMI over the location of AAMI’s data centre.

It’s come at an embarrassing time for Promina CEO Mike Wilkins, although analysts say the issue under contention isn’t likely to cause too many ructions around the group’s float. At the heart of the matter is the cost of the move of the centre from Melbourne to Sydney in real terms. In its past three compulsory risk and compliance returns to APRA, AAMI has said that the move is a risk. But Promina hasn’t cited the move as a risk, and no mention was made of the issue in its prospectus.

The Australian Financial Review reported yesterday that AAMI believes the merger of its Melbourne data centre with Promina’s Sydney-based operations could erode the value of AAMI in the longer term.

But Mr Wilkins was quick to point out that Promina modified its original data centre proposal in consultation with AAMI, and also made it clear that the corporate group’s interests are paramount in such a matter. He told the AFR the due diligence committee examined and dealt with the issues before the prospectus was lodged.

The newspaper quoted a report commissioned from consultants LEK, which said in part: “AAMI has a unique and sustainable advantage in its strategic activity system… there is considerable risk of damaging AAMI’s comparative advantage by removing the data centre.”