Sun Life Financial Inc. today announced an 8% increase to its quarterly dividend on common shares.

The insurer boosted its quarterly dividend to 27.5¢ a common share, from 25.5¢ a share, payable April 3 to shareholders of record on February 22.

“The increase in the common share dividend reflects the company’s strong financial performance and management’s confidence in the solid progress made in the business operations,” Sun Life said in a release.

“The company is also increasing its target payout ratio to 30% to 40% of operating earnings.”

Yesterday, Sun Life reported that its fourth-quarter earnings increased 9% to $478 million, or 82¢ per share, compared with $438 million, or 74¢ a share a year earlier.