Axis Capital Holding’s bid to buy Novae Group has been accepted.

At a general meeting in London yesterday shareholders approved the deal, with about 99.97 per cent of shareholder votes cast in favour of the proposal.

The approval comes only a few days after Novae confirmed it was closing its operations in Bermuda.

The combination of Axis and Novae will create a global speciality insurer and reinsurer with gross written premiums in excess of $6 billion.

Novae originally agreed in July to be bought by Bermudian-based Axis for $604 million. But a shareholder revolt halted that deal, with many saying the price undervalued Novae.

Among those who apposed the original purchase price was london-based MVN Asset Management, the second largest shareholder of Novae with a 9.62 per cent stake. It voted against the previous deal in a proxy vote last Thursday, according to an e-mail seen by Reuters.

The following day, Axis made an increased “full and final offer” of $611.38 million.

This was voted on and approved by shareholders yesterday.

Albert Benchimol, president of Axis, said: “The acquisition of Novae accelerates the growth strategy of our international insurance business, creating a $2 billion insurer in the London speciality market, while significantly scaling up our capabilities and enabling Axis to even better serve our clients and brokers.

“We are excited by the possibilities this presents and look forward to welcoming the Novae team as we work together to achieve our shared ambitions.”

Matthew Fosh, chief executive officer of London-based Novae, said: “We are pleased that Novae shareholders supported the transaction. We strongly believe that the combined company will be superbly positioned to compete in the international speciality insurance marketplace.”

The transaction is subject to regulatory approval and other customary closing conditions and is expected to close in the fourth quarter. Credit Suisse International and Fenchurch Advisory Partners are acting as financial advisers to Axis Capital.