Lord Levene of Portsoken, a former Lord Mayor of London, will replace Sax Riley as Chairman of Lloyd’s at the end of the year. He is the first “outsider” to be appointed to the position in the market’s 314-year history.

In a statement, Lord Levene said he will continue the modernisation program started by Mr Riley, who is retiring after two years in the top job. “Sax Riley, [Lloyd’s CEO] Nick Prettejohn and their colleagues have set the market firmly on the road towards reform and wholesale modernisation. My task… is to ensure that we do not fail to complete the voyage.

“Lloyd’s has already succeeded in making a series of major improvements to its operations since the mid-1990s. The goal of a modern, transparent and profitable business for the 21^st century is well within our grasp.”

Lord Levene is presently Vice-Chairman of Deutsche bank in the UK, and was Lord Mayor of London in 1998-1999.

Mr Riley intends to put the modernisation proposals to the market’s membership before he hands over. He wanted the 61^st chairman to come from the ranks of businessmen outside the market, which he believes is “inward-looking”. Mr Riley said Lord Levene “fits the bill perfectly. He has a breadth of knowledge and experience of international commerce that will be a tremendous asset for Lloyd’s.”