Norwich Union shareholders are being asked to approve the group's merger with CGU at the end of the month. Those voting by proxy should return their forms by March 29th, ahead of the shareholders' meeting on March 31st. The merger will create the biggest general insurer in the Irish market and the third-biggest in the life assurance and pensions industry bringing together the businesses of Norwich Union and CGU's operations, which include Hibernian Insurance. The enlarged company will be the UK's biggest insurer.

Under the terms of the deal, CGU will acquire all the shares in Norwich Union, to form CGNU. Shareholders will receive 48 new CGNU shares for every 100 Norwich Union shares held.

Norwich Union chief executive Mr Richard Harvey said the company would not disclose how the merger would affect its Irish businesses until after March 31st. The merger is expected to yield annual savings of at least £250 million sterling (€406 million). Mr Harvey refused to state how much of this would come from the Irish operations, which employ 1,700 people.