TORONTO - Sun Life Financial boosted its quarterly dividend five per cent after reporting that its net income surged 20 per cent to $681 million in its third-quarter.

The Toronto-based insurer says it will increase the payout by 2.5 cents to 55 cents on Dec. 31 to shareholders of record on Nov. 27.

Sun Life says it earned $1.15 per share for the period ended Sept. 30, up from 93 cents per share or $567 million in the prior year.

Adjusted profits were $809 million or $1.37 per share, up from $730 million or $1.20 per share in the third quarter of 2018.

Analysts expected adjusted net income of $751.43 million and earnings per diluted share of $1.27, according to the financial markets data firm Refinitiv.

Sun Life Financial operates in 26 countries, with more than 37,000 employees worldwide as of Dec. 31, 2018.