Motoring solutions company Lex Service plc has teamed up with AXA Insurance to launch RAC Financial Services.
The companies said the joint venture is intended to make the most of the RAC brand by marketing insurance and financial services products to RAC customers and UK motorists.
The new agreement runs until 31 December 2011 and replaces the previous arrangements inherited as part of Lex's acquisition of RAC.
RAC's share of the new joint venture's profits will increase from 42% in 2003, to effectively 80% in 2011.
AXA director of personal lines Lee Gladwell said: "We are delighted to reach agreement on a major new joint venture with RAC. The new, long-term deal gives us a great opportunity jointly to grow a significant new financial services business under a powerful brand."
