Insurers in the US and Europe are maintaining pricing discipline in the property/casualty markets despite the influx of extra capacity, according to ratings agency AM Best.

Basing its findings on the January renewals in the US and Europe, AM Best says the January renewals highlighted a “moderate decrease” in premium rates. It says some expected hikes in US property lines exposed to last year’s hurricanes were experienced.

AM Best also notes renewal negotiations were marked by continued reserve strengthening for US liabilities and that uncertainties about future loss patterns and claims inflation will remain in 2005.