UPDATE 1-HealthSpring raises '07 profit view

(Adds 2008 revenue view, Reuters Estimates, CFO comment)

Jan 23 (Reuters) - Managed care company HealthSpring Inc (HS.N) on Wednesday raised its 2007 profit view as it expects to record an accrual for a settlement payment and forecast 2008 results in-line with estimates.

The company expects earnings of $1.50 to $1.52 a share, up from its prior view of $1.40 to $1.45 a share.

Analysts on average had expected earnings of $1.48 a share, before items, for 2007.

"A number of items in the 2007 fourth quarter will partially offset the positive effect of the risk payment accrual, including lower-than-expected margins in the company's PDP and commercial lines of business and higher-than-anticipated SG&A expense," Chief Financial Officer Kevin McNamara said in a statement.

For 2008, the company forecast a profit of $1.75 to $1.90 a share, on total revenue of $2.0 billion to $2.2 billion.

Analysts were expecting earnings of $1.75 a share, excluding items, on revenue of $2.08 billion for the year, according to Reuters Estimates. (Reporting by Dilipp S. Nag and Aradhana Aravindan in Bangalore; Editing by Amitha Rajan)