Air Canada acquires Aimia air miles program for $376mn
Canada’s largest airline, Air Canada, announced this week it had completed its acquisition of Aimia Inc, the owner and operator of the Aeroplan loyalty business. Aeroplan’s air miles service will, following the launch of Air Canada’s own loyalty scheme in 2020, retail a one-to-one value with Air Canada’s air miles.
Air Canada will pay a total of US$376mn for the loyalty program, which Aimia will reportedly use to settle existing debts, according to CTV News. Following the sale of the program, Aimia has confirmed that approximately half of its 1,500 employees will transfer to Air Canada.
The decision came after extensive consultation by Air Canada with its customer base. After surveying over 30,000 customers, Air Canada identified that customers had a strong preference to use their Aeroplan Miles in the new Air Canada loyalty program. "We are also now able to provide confirmation to Aeroplan members that their existing Aeroplan Miles will be honoured on a one-to-one basis in our new program. Finally, with today's transaction, customers will have certainty that they can continue to earn and redeem Aeroplan Miles confident that their existing Air Canada Altitude status and privileges are secure,” said Calin Rovinescu, president and CEO of Air Canada.
He continued, saying that “for many Canadians, given Aeroplan's privileged access to Air Canada, it is the next best currency to the Canadian dollar."
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.