The European insurance and aviation sectors recorded exceptional financial results in 2025. The IAG Group, owner of British Airways and Iberia, reported a 20% increase in operating profit despite a drop in passenger numbers. Swiss reinsurer Swiss Re closed the year with a record net profit of $4.8 billion. Meanwhile, the German chemical conglomerate BASF announced a tightening of its savings program in the face of a projected income decline in the coming year.

Record Profit for Swiss Re

The Swiss reinsurer earned $4.8 billion net in 2025, allowing it to announce an increased share buyback.

Success for British Airways Owner

The IAG Group increased profits by 20%, benefiting from high demand for air travel despite a lower number of passengers.

BASF Tightens Savings

The German chemical giant is preparing for a more difficult 2026, planning additional operational cost cuts.

Boom in the Defense Sector

Rolls-Royce and Indra Sistemas record record orders thanks to increased defense spending by European states.

The year 2025 proved to be a period of dynamic growth for key players in the European insurance and air transport markets. The Swiss reinsurance giant Swiss Re announced a record net profit of $4.8 billion, representing a significant jump compared to the previous year. This result surprised analysts, and the company's management decided to expand its share buyback program. The main growth drivers were a lower number of claims caused by natural disasters and a new risk pricing policy in the property segment. The reinsurance sector in Europe, dominated by players like Munich Re and Swiss Re, has for decades been the foundation of global risk management, evolving towards advanced data analytics. Equally spectacular results were presented by International Airlines Group (IAG), which owns British Airways, Iberia, and Aer Lingus. The group recorded operating profit higher than expected, even though passenger numbers slightly declined last year. Operating margin remained at a stable, high level thanks to strong demand for long-haul flights and high ticket prices. Aer Lingus performed particularly well, with its operating profit increasing by 38%, reaching €282 million. IAG's management is optimistic about 2026, pointing to a very high number of bookings in the first quarter. „Our 2025 results show the resilience of our group and the strength of our brands against a volatile market backdrop.” — CEO of the IAG Group (owner of British Airways and Iberia). Completely different sentiments prevail in the chemical and defense sectors. German BASF, despite generating net profit in 2025, warns of an upcoming slowdown and plans further cost cuts. Meanwhile, British Rolls-Royce benefits from increased defense spending, recording record results in its tank engine and emergency power systems segments. Spanish Indra Sistemas also saw a jump in its stock price after announcing the modernization of the Spanish armed forces, translating into a record order portfolio.

Mentioned People

  • Luis Gallego — CEO of the IAG Group (owner of British Airways and Iberia).