The Franchise Board members were drawn from both inside and outside the Lloyd's market.

Lloyd's said membership is based on experience and expertise rather than representation of a constituency within the market, as has traditionally been the case on Lloyd's committees.

Four Non-Executive members of the board are drawn from outside the market. They have been chosen to bring the expertise that will make the board effective in the various aspects of its work, Lloyd's said.

The non-executives, Lloyd's said, bring together experience with accounting, branding, technical, regulatory and governance issues, from the financial services sector and outside. They are Roy Brown, Judith Hanratty, Stephen Hodge and Jim Stretton.

Three Non-Executive members of the board were described as experienced practitioners drawn from the Lloyd's market: Stephen Catlin, Edward Creasy and Andrew Kendrick.

They will be joined from the Lloyd's Corp. by Nick Prettejohn, Lloyd's chief executive, and Andrew Moss. Lloyd's is currently recruiting for the post of Franchise Performance Director, who will also join the board.

Lord Levene called the Franchise Board "one of the lynchpins of the Lloyd's reforms, and its formation shows that change is truly under way. Not all of those changes may be visible to the outside world, but the Franchise Board is very tangible evidence of a radical transformation now taking place. It is a positive step forward in our drive for modernity, transparency, and sustainable long-term profitability."

He added that it would provide "a powerful focus for decision-making that the new Lloyd's franchise will need. The fact that the board combines both market supervisory and commercial roles means issues can be dealt with in a more coherent and efficient manner, with board members being given a real oversight over all the market's activities."

Mr. Prettejohn said that "too often in the past, Lloyd's has been accused of being dated and inward looking. This new board draws together a wide range of highly qualified people who we believe are the very best for the job."

He said the Non-Executives from outside the market "have broad expertise and knowledge of international business and the financial services sector, plus some genuinely different insights to offer. Their independence and expertise, combined with the considerable market experience on the board, will add a fresh sharpness to our management of the Lloyd's franchise."

He said the board was created "to maintain a high degree of independence and accountability, and to consciously to reflect best practices on corporate governance. The new structure provides rigorous oversight and clearly defined responsibilities."

The Franchise Board was proposed as part of the program of reforms created by the Chairman's Strategy Group and approved by the members of Lloyd's in a vote in September.

Lloyd's said that among the strategic and policy issues the board will undertake are setting targets for the market's profitability, identifying and evaluating major risks facing the market, and setting a prudent solvency policy. The board will also deal with some key operational issues such as admitting and removing franchisees from the market.

The Franchise Board's aim announced by the Council of Lloyd's is to develop a strategy to create and maintain a commercial environment at Lloyd's in which the long-term return to all capital providers is maximized, and to form principles which Lloyd's should follow to achieve this goal.

Besides Lord Levene, a former Tory government official, who has a lengthy career in business and government management outside the market, the background of other board members included the following:

? Roy Brown--retired president of Unilever, now a Non-Executive Director of HMV plc., BUPA and Thus plc.

? Judith Hanratty--a New Zealand barrister and a nominated member of the Council of Lloyd's since 1998 whose posts include company secretary of BP plc., Commonwealth Institute chairman, and Charles Taylor Consulting plc. non-executive director

? Stephen Hodge--a solicitor and retired finance director at Royal Dutch Shell, is a non-executive director of mmO² plc. and chairman of the Shell Pensions Trust.

? Jim Stretton--chief executive of U.K. operations for Standard Life, is a trained actuary and member of the Court of the Bank of England.

? Stephen Catlin--a member of Lloyd's since 1973, founded Catlin Underwriting Agencies Ltd. in 1984. He was appointed chairman of CUAL in 1988. He is Lloyd's Market Association chairman representing Lloyd's businesses and a Lloyd's Council working member.

? Edward Creasy--chief executive officer of R.J. Kiln & Company plc., and Lloyd's Market Association treasurer.

? Andrew Kendrick--underwriter and director of underwriting for Syndicate 2488, a member of ACE Global Market's Executive Underwriting Committee, and an AGM Underwriting Ltd. director.

Mr. Prettejohn has been Lloyd's chief executive since 1999.

Mr. Moss has been Lloyd's director of finance and operations since November 2000 after a career in banking.