Shareholders in Norwich Union and CGU have voted in favour of a planned �19bn merger which will create Britain's biggest insurer.

Norwich Union said postal votes received before the extraordinary general meeting at Wembley Conference Centre meant the "yes" vote was certain to be carried by its shareholders.

The postal result saw 83.32% of shareholders and 91.52% of shares vote in favour of the merger.

CGU also announced that its shareholders endorsed the deal, which is still waiting for regulatory approval.

Although the majority of Norwich Union shareholders voted in favour of the deal, the company's board members met with vocal opposition from some shareholders at Friday's meeting.

They said that the deal was not a good one for Norwich Union and that the company would not be getting a fair slice of the combined group.

Shareholders in Norwich Union will own 41.5% of the enlarged company, with the rest owned by shareholders in CGU.

The new company will be based in London and called CGNU. It will be the largest provider of general insurance and the second-largest provider of life insurance in Britain.

It will be Europe's fifth-largest insurer.

The companies have said 5,000 jobs, or 7% of their total workforce, will be cut as part of the combination.

Share sentiment improves

Norwich Union shares closed up 1.5% at 420.5p while CGU's shares closed down less than 0.5% at 875p.

Both shares underperformed the FTSE by more than 10% immediately after the announcement, partly on disappointment that it did not include a takeover premium for Norwich Union.

Traders also said that poor sentiment towards "old economy" and insurance stocks in particular in late February also drove them down.

But sentiment has turned in the last week as analysts have welcomed the merger plan and saying it strengthens CGNU's joint position in the growing European market for life assurance and pensions products.