The new chairman, who has served as an adviser to former Tory Prime Minister John Major and a Lord Mayor of London, is the first chairman in Lloyd's 314-year history to be selected from outside the London-based insurance market.

His background in management includes executive posts in banking, transportation, urban development and food retailing.

Appointed as new chairman in June, Lord Levene was elected unopposed yesterday by the Council of Lloyd's--the market's ruling body. Lloyd's said his minimum term is three years.

"It's a proud moment for me to be taking up the reins of this world famous insurance market. Its global reputation is strong and its brand is envied everywhere," he said. "Today, the financial services industry is experiencing difficult times, while Lloyd's is benefiting from the strongest trading conditions in almost four decades. One of my tasks is to sell the Lloyd's message around the world."

He said he will be working closely with Lloyd's Chief Executive Nick Prettejohn and the market's senior executive team to "drive forward the implementation of our reform program and complete the transformation of Lloyd's.''

"My predecessor Sax Riley and the members of the Chairman's Strategy Group have done an outstanding job in producing a set of reforms, which the market has now voted to carry forward," he said. "It's a fitting tribute to Sax that such far-reaching proposals have been adopted, which give us a clear sense of purpose."

He said that 2003 would be a "year of transition for Lloyd's with the introduction of the new franchise concept and changes to our accounting system." He added that by 2004, "I expect to see a stronger, more disciplined Lloyd's, which can be compared favorably with the insurance industry worldwide in terms of its transparency and its efficiency. Beyond that, the goal is profitability that is sustainable in the long term. It's a goal I'm committed to achieve."

Lord Levene served in the civil service beginning in 1984, when he was named personal adviser to the secretary of state for defense, then chief of defense procurement at the Ministry of Defence from 1985-91. He was also the prime minister's adviser on efficiency and effectiveness from 1992 to 1997.

His career in the private sector has included positions a chairman of the Docklands Light Railway Ltd. (1991-94), chairman and chief executive of Canary Wharf Ltd. (1993-96), director of Haymarket Publications Ltd., and vice-chairman of Deutsche Bank AG London.

He remains a director of J. Sainsbury plc. chairman of General Dynamics UK Ltd., and chairman of International Financial Services, London.

He held the office of Lord Mayor of the City of London from 1998-99.