UK supermarket giant Sainsbury’s has relaunched its car insurance offering in a bid to take on its main rival, Tesco.

Sainsbury’s motor insurance was previously underwritten by esure, but it has relaunched its products in partnership with Royal Bank of Scotland (RBS) Insurance brand Churchill.

As an incentive to buy its motor policy, Sainsbury’s will offer its customers savings of about 15% on premiums in the form of loyalty card points, as well as double loyalty points on fuel and shopping for two years.

The move is part of a wider plan by Sainsbury’s to expand its financial services business.

“Our aim is to significantly grow our insurance business over the next five years and motor insurance is key to this strategy,” said David Fisher, CEO of Sainsbury’s Finance.

UK newspapers say Sainsbury’s insurance business has increased new business by about a quarter in the past year, and has reported pre-tax profits of £30 million ($46.2 million).

Tesco is believed to write around 5% of the UK motor insurance market using a panel of insurers – a figure that is expected to increase following its recent launch of an online second-hand car dealership.

It recently bought RBS out of its joint-venture financial services business, with Tesco reportedly planning to offer bank accounts and mortgage lending in the future.