Insured Group has been censured by the New Zealand Markets Disciplinary Tribunal and fined $NZ50,000 ($38,615) for breaches of the New Zealand Stock Exchange (NZX) listing rules.

The first breach related to failing to produce its annual report on time. The NZ-listed Australian insurer was required to lodge its 2011 annual report by September 30 last year, but the report was not made available to investors until November 25.

Insured Group told shareholders the report was available on its website from November 1.

In its response to the tribunal, Insured Group admitted it had not lodged its annual report on time, but asked for a penalty of $NZ10,000 ($7722) as it had “already suffered reputational harm” as a result.

Its argument for the late lodgement was to meet the accounting protocols of restructuring the company. This required three audit firms, one independent accounting firm for Insured Group and one for New Zealand broker Rothbury, which had bought some of its businesses.

Insured Group was also investigated for seeking NZX approval for notice of the annual general meeting when all the information to be sent to shareholders was not complete.

The third breach was for not sending out sufficient information with its AGM notice.

The annual report was sent to shareholders three days before the AGM.

Insured Group argued the penalty for the second breach should be $NZ5000 ($3861) and $2500 ($1930) for the third event.

The tribunal dismissed Insured Group’s claim that its auditors were delayed by having insufficient resources and the NZX, in its submission to the regulator, did not agree “negative publicity” the insurer may have received in Australia was a mitigating factor.

Insured Group has also been ordered to pay the costs of both the NZX and the tribunal.

Meanwhile, Insured Group Chairman Bill Jefferies has resigned, citing personal reasons for his departure.

MD Wayne Miller says Mr Jeffries, a former New Zealand justice minister, has been a chairman of “unquestionable integrity, honesty and efficiency in his role”.

Mr Jefferies was found guilty in the High Court in Wellington last month on four charges of making false statements when he was a director of failed finance company Lombard.

He has been replaced by Barry Driscoll, the Chairman of Priority One Network, which recently took a 16.67% stake in Insured Group.