Cigna shares slumped Friday after the health insurer reported a weaker-than-expected fourth-quarter profit and outlook for 2014.

Revenue from premiums and fees rose 7 percent to $7.28 billion, but Cigna also spent more money on medical care for its Medicare Advantage members. Medicare Advantage plans are privately run versions of the government's Medicare program. A $40 million charge from a cost-cutting plan also weighed on profit.

The company said its net income fell 11 percent, to $361 million, or $1.29 per share, from $406 million, or $1.41 per share, in the fourth quarter of 2012.

Excluding one-time charges, earnings fell to $1.39 per share from $1.57 per share. FactSet says analysts expected net income of $1.48 per share.

Revenue grew 7 percent, to $8.15 billion from $7.62 billion. Wall Street predicted $8.06 billion.

For all of 2013, net income fell 9 percent to $1.48 billion. Excluding one-time items the company earned $6.79 per share. Revenue rose 11 percent to $32.38 billion.

In the new year Cigna said it expects to earn between $6.80 and $7.20 per share. Analysts are forecasting net income of $7.29 per share on average.

Shares of the Bloomfield, Conn.-based Cigna Corp. declined $7.13, or 8.4 percent, to $78.24 in midday trading.