UPDATE 4-Cigna quarterly profit tops Street expectations

* Q4 EPS ex-items $1.03; Street view 96 cents

* Backs FY EPS view of $3.75-$4.15

* International profit falls 14 pct

* Cigna shares little changed in weak market (Adds stock activity)

By Lewis Krauskopf

NEW YORK, Feb 4 (Reuters) - Health insurer Cigna Corp (CI.N) posted a better-than-expected quarterly profit on Thursday, helped by the performance of its reinsurance businesses and its accident insurance policies.

Those businesses offset weaker-than-expected results for its international segment, a major area of focus under new Chief Executive Officer David Cordani.

Cigna, one of the largest U.S. health insurers, backed its profit forecast for 2010.

Its results follow substantial quarterly earnings beats by rivals UnitedHealth Group (UNH.N) and WellPoint (WLP.N) and in-line profit from Humana (HUM.N).

"Overall Cigna's fourth-quarter results were good, but not as strong as either UnitedHealth's or WellPoint's, in our view," Wells Fargo analyst Matt Perry said in a research note.

Cigna shares were little changed, compared to a 1.9 percent drop for the S&P Managed Health Care index .GSPHMO and a weak overall stock market.

Shares of health insurers have been volatile as the future of U.S. health reform legislation that could hurt their profitability remains in flux.

Cigna's fourth-quarter net income was $330 million, or $1.19 per share. That compared with a net loss of $209 million, or 77 cents per share, a year earlier, when results were hurt by market-sensitive reinsurance businesses Cigna no longer actively sells.

Excluding one-time items, earnings were $1.03 per share. On that basis, analysts on average expected 96 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 4 percent to $4.64 billion. Analysts looked for $4.6 billion.

Earnings in Cigna's main healthcare segment fell 7 percent to $194 million. Membership dropped 5 percent to 11.04 million. Operating cost controls helped results, Cigna said.

Cigna's enrollment increased by 18,000 from the third quarter in its commercial plans for which it assumes full insurance risk -- the first such growth since 2006, according to Goldman Sachs analyst Matthew Borsch.

Profit in the company's disability and life segment edged up 3 percent to $66 million, helped by performance in the accident business.

Cigna's reinsurance businesses posted a profit of $9 million, against a year-ago loss of $179 million.

The stability of the equity markets helped the reinsurance businesses, including a death-benefits business, because Cigna's liabilities for these policies increase in periods of declining equity markets and interest rates.

Profit in Cigna's international business fell about 14 percent to $38 million. Results were hurt by higher medical claims in its business that provides insurance for people working abroad.

Cordani, a longtime Cigna veteran who started as CEO at the start of the year, told Reuters last month he could see international reaching about 30 percent of company profits in five years. [ID:nN04241856]

Cigna backed its full-year forecast of earnings, excluding items, of $3.75 to $4.15 per share. Analysts expect $4.04.

Cigna's outlook excludes potential share buybacks, which Goldman's Borsch said could add at least 10 cents per share for 2010.

The company expects its 2010 medical membership to change in a range of down 1 percent to up 2 percent. Previously, it expected membership to be flat this year. The new forecast reflects growth in a Medicare business of about 80,000 to 90,000 members.

Cigna shares rose 4 cents to $34.80 in morning trading on the New York Stock Exchange. (Reporting by Lewis Krauskopf; Editing by John Wallace, Maureen Bavdek, Dave Zimmerman)