Source: The Canadian Press

Intact Financial Corp. (TSX:IFC) said Wednesday it earned a fourth-quarter profit of $97.5 million, up from a $96.7 million a year ago, boosted by investment gains.

The Toronto-based insurance company also increased its quarterly dividend by three cents, to 37 cents per share.

Intact’s profit amounted to 87 cents per diluted share for the quarter ended Dec. 31 compared with a profit of 81 cents per diluted share a year ago.

Direct premiums written for the quarter totalled $1.06 billion, up from $1.01 billion.

Investment gains improved to $34.8 million for the quarter compared with $4.6 million in the last quarter of 2009.

Intact also announced Wednesday that it has renewed its share buyback plan and adopted a shareholder rights plan to prevent hostile takeovers.

For the full year, the company earned $419.8 million or $3.65 per share on $4.5 billion in direct premiums. That compared with a profit of $126.7 million, or $1.06 per share, on $4.27 billion in direct premiums in 2009.

Intact shares were down $2.39 at $48.92 on the Toronto Stock Exchange on Wednesday.