INSURANCE giant Aviva said yesterday that sales of car insurance were up 12% as it revealed it had secured 318,000 new customers in the past year.

In a statement for the third quarter of its financial year, Aviva said there had been a 9% rise in general insurance and health net written premiums while UK life and pension sales were up 6%, although long term savings sales were 8% down.

Aviva, which has pursued a strategy of focusing on its core business, also confirmed the �1billion sale of Norwich-based RAC to the Carlyle Group.

Last month it also announced a shake-up of its Ireland operation amid the loss of around 900 jobs.

Andrew Moss, Aviva group chief executive, said the group was focused on the balance sheet in a tough economic environment.

“Markets have been exceptionally volatile but we have delivered a strong operating performance in the first nine months and we remain on track to meet our financial targets this year,” Mr Moss said. “Focusing on capital generation and our capital and liquidity position will continue to be priorities.

“Aviva is fitter and leaner today. While the market environment is likely to remain challenging in the near term, we continue to make good strategic progress and are strengthening customer franchises in key markets, notably the UK.”