Nicely covered

Aviva’s £1.1bn acquisition of breakdown group RAC may be presented as a gigantic cross-selling opportunity for the UK’s largest life, car and home insurer. But it more resembles the classic cost-crunching deal that is the hallmark of chief executive Richard Harvey. The RAC generated turnover of £1.2bn from its roadside assistance, fleet hire and driving tuition operations in 2004. Despite this, its operating profits were just £66m. Few will doubt Aviva’s ability to cut £80m in duplicated costs ...