John Nelson is to be appointed the next chairman of Lloyd’s, replacing Lord Peter Levene in October, the Council of Lloyd’s says.

Levene will retire after nine years as Lloyd’s chairman.

Nelson will receive a salary of £525,000 ($854,578 at current exchange rate) annually for three years, on the basis of working an average of three days per week.

“It is a great honor for me to accept this role, and I look forward to playing my part in steering the world’s leading insurance market through the next stage of its evolution,” Nelson says.

Nelson is new to the insurance industry. His business career has principally spanned the financial-services, real estate and retail sectors, Lloyd’s says.

The formalities, including Nelson’s appointment as a nominated member of the council, will be completed at the September council meeting, Lloyd’s says.

Levene calls Nelson “an experienced businessman with a successful record. He is an excellent choice.”

“John’s business experience makes him the perfect candidate to take on this role and help Lloyd’s build on its position as the preeminent market for specialist insurance,” adds Lloyd’s CEO Richard Ward.

Levene also came to Lloyd’s from outside the insurance industry. He started his career in the defense industry with United Scientific Holdings. He was selected to act as personal advisor in the Ministry of Defence, and subsequently as permanent secretary in the role of chief of defense procurement, a position which he held for six years.

After that, he held a number of government posts: as advisor to the Secretary of State for the Environment, to the president of the Board of Trade and to the Chancellor of the Exchequer.

He was appointed as advisor to the Prime Minister on Efficiency and Effectiveness from 1992 to 1997.