The European Commission has approved the proposed merger between Norwich Union and CGU.
The new entity will be one of the largest general insurers in Europe. It will be the fourth largest European-based insurer according to worldwide writtenpremiums and the fifth largest life office on the continent.
All mergers must first meet Brussels' stamp of approval. A test is applied to ensure satisfactory competition in the sector they operate. The Commission found that there was adequate insurance competition in both the UK and Ireland to allow the merger.