Aviva has set a profit target of £250m per annum by the end of 2008 for RAC Insurance.

At a presentation to analysts and investors today, Aviva general insurance executive director Patrick Snowball
said current cost savings from RAC integration, following Aviva's acquisition of the company in March, would increase from £100m to £130m per annum from 2008.

The company added that the target for RAC Insurance customer numbers would be an increase of 600,000.

This would bring the total number of RAC Insurance customers to 900,000 by end of 2008.

Snowball added: "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.

Aviva has also upped its targets for its worldwide general insurance business to meet or beat a combined operating ratio of 98%.