Newcomer Levene to lead transformation of Lloyd's. (Executives).

Lloyd's has reached outside of itself for the first time to hire a chairman, selecting a banking executive to take over the London-based insurance market at the end of 2002.

The Council of Lloyd's chose Lord Peter Levene, vice chairman of Deutsche Bank London, to succeed Sax Riley, who plans to retire after serving as Lloyd's chairman for two years.

Levene will arrive amid an intensive effort by the market to modernize itself and present a better, more comprehensible image to the outside world.

"As part of our reform process, we said we wanted to appoint an individual...with experience of business outside the Lloyd's market," Riley said in a statement. "Lord Levene fits the bill perfectly. He has a breadth of experience and knowledge of international commerce that will be a tremendous asset for Lloyd's."

Levene released a statement of his own: "Lloyd's has already succeeded in making a series of major improvements to its operation since the mid-1990s. The goal of a modem, transparent and profitable business for the 21st century is well within our grasp. This modernization will be my top priority as chairman."

Nicholas Johnson, an equity analyst with Numis Securities in London, said Levene's appointment offered the hope that Lloyd's could improve its image and change outdated perceptions of the market. Levene, he said, has a good reputation "within the square mile"- that is, in London's financial district.

Johnson said Levene appeared to be an "able diplomat" and well connected in both financial and government circles, ideal for helping to build Lloyd's global franchise.

Levene graduated from the University of Manchester and held an array of jobs in defense, transportation, commercial real-estate development, publishing and banking before he joined Deutsche Bank in 1999.