Axa Asia Pacific Holdings (Axa APH) shareholders have overwhelmingly voted for the merger with AMP.

A total of 99.23% of shareholders voted in favour of the motion that will see the end of Axa operations in Australia.

The shareholders were also decisive, with 98.9% voting to sell Axa’s Asian business to the French parent. d

However, there was more disquiet from shareholders over the payouts for senior Axa executives, including around $17 million for CEO Andy Penn. Votes in favour of the payout scheme were 87.38%.

Axa Chairman Rick Allert defended the payments at shareholders’ meetings in Melbourne, saying the agreements were in place before the merger proposals.

“They are part of the existing contracts Axa has already agreed with them as part of their employment,” he said.

AMP CEO Craig Dunn welcomed the merger vote, which was one of the final hurdles for approval of the deal.

“A merged AMP Axa will bring together two of Australia’s longest-standing businesses,” he said. 

“It will deliver a new force in financial services by creating a company with the size and resources to be a strong competitor to the ‘big four’ banks.”

Earlier, Federal Treasurer Wayne Swan gave Federal Government’s approval and said he hoped there would not be too many job losses.

Both Axa and AMP have been very silent on job numbers in the merged business, but it is expected a number of advisers will leave, preferring not to work for the Sydney-based financial services company.

The deal is now subject to court approval today and Axa will cease to be a listed entity tomorrow.

Axa shareholders will now receive the equivalent of $6.43 per share, consisting of cash and AMP shares. They will also receive Axa’s 2010 final dividend of 9.25 cents per share.

Axa APH has been listed in Australia for 14 years, although the company’s predecessor, National Mutual, dates back to 1869.

Over the years National Mutual grew by acquiring a number of life insurance businesses in Australia, including Commercial Union and T&G Mutual.