Lutine

Love him or loathe him, you can’t deny the man has got clout.

When Lord Levene was elected as chairman of Lloyd’s in November 2002 he came with a pretty impressive reputation.

His resumé is dotted with chairmanships of some of the most renowned organisations, including the Docklands Light Railway and Deutsche Bank, to name but two.

It is his government posts, however, and in particular the role as adviser to the prime minister from 1992 to 1997, that are regarded as the lynchpin to his success as chairman.

“He is widely admired both in the UK and overseas in government and business circles,” admits one senior Lloyd’s figure. “On those grounds alone I think he has done a fantastic job opening doors for Lloyd’s.”

Those doors have led to China, pressure in the US over capitalisation, and most recently his close connections with Gordon Brown through the high-level group.

It is Levene, and Levene alone, who has been tasked with reporting back to the group in the autumn on the progress the London whole-sale insurance market has made to modernise in the face of increasing global competitiveness.

With such ties, it is little wonder that speculation is mounting over whether his own political clout has helped to secure an un-precedented third term in office for the life peer.

Under changes proposed by the government to modernise the corporate governance arrangements of Lloyd’s by amending the Lloyd’s Act 1982, Levene looks set to be-come the first chairman to stay on beyond the six-year tenure.

When it comes to issues of whether to stay or go you often face the danger of out-staying your welcome, or losing the credibility and re-spect that has got you that far.

Levene on the other hand is unlikely to generate either and the prospect of another three years in office may not be a bad thing in an industry so often hit by instability.

He may evoke polarised feelings in the market, but there is an underlying feeling that without him the corporation would lack the kind of bravado that has Bermudans knocking fiercely on the door.

Questions have circulated around the market about appropriate replacements to take over from departing directors, but if Levene does leave on cue in November 2008, the task of electing a successor could prove more difficult than that of manag-ing the insurance cycle.

One market source flip-pantly suggested former prime minister Tony Blair could fit the bill, but with speculation about how former City minister Ed Balls’ plans will affect the Lloyd’s chair-manship, Blair may have to fight Levene for the honour. IT