Having raised its full-year profit forecast, Aviva, the UK's largest insurance group, has announced ambitious new targets for its recently acquired RAC motoring assistance group.

By 2008 Aviva intends to have attracted an additional 1.4 million RAC customers, swelling its rescue service by 800,000 members to three million and its insurance section by 600,000 to 900,000.

In addition to this Aviva plans to achieve cost savings of $227 million from the full integration of the RAC by 2008. Of this the group expects $148 million to be generated through increased operational efficiency whilst $79 million is expected to arise out of the benefits of the purchasing power of the enlarged group.

Patrick Snowball, executive director of Aviva general insurance said, The acquisition of RAC is transforming our UK business, making us the leading provider of motoring services. We’re moving fast on the integration and will beat our original cost saving target. We have announced ambitious growth plans for the RAC and will more than double profits from the acquisition by the end of 2006, with more to come in later years.