Upto 250 people are likely to face redundancy as a result of the merger between the CGU Group (formerly Commercial Union and General Accident)and Norwich Union in the first step towards integration of services in the merged operations.

The group announced the news on Sunday as part of its plans to close the global risk business, a part of the group which advises larger companies on general insurance needs.

The company has also announced a fall of £53 million in operating profits to £800 million for the first half of the year.