Bill Jeffries has resigned as chairman and director of Insured Group after he was among four directors of the failed Lombard Finance found guilty of making untrue statements in investment documents.

He plans to appeal against the decision.

Jeffries has resigned effective March 1 "due to personal reasons", Insured Group managing director Wayne Miller said. Barry Driscoll was named replacement chairman, effective immediately.

Insured Group backed Jeffries on his departure, saying he had been "a fine chairman of unquestionable integrity, honesty and efficiency in his role."

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The former Justice Minister has "impeccable skill with corporate governance" and the board "unequivocally supports him and wishes him well in his future endeavours."

The company will seek a waiver from the NZX to give it enough time to appoint a replacement New Zealand resident director.

Last month in the High Court at Wellington, Judge Robert Dobson found Jeffries, Doug Graham, Lawrence Bryant and Michael Reeves guilty of making untrue statements in investment documents and advertisements in late 2007 and early 2008.

The Lombard collapse left 4400 investors owed $127 million.