agreed to sell its property and casualty unit to Bermuda-based ACE -- said yesterday that first-quarter profits slipped about 36 percent.

They were dragged down by a hefty $91 million charge related to a new accounting rule for its property and casualty business.

Consolidated net income for the period ended March 31 was $188 million, or 91 cents. In the year-earlier period, the Philadelphia company earned $293 million, or $1.34 per share, excluding a gain of $202 million from the divestiture of its individual life insurance and annuity business.

Operating income was $251 million, or $1.21 per share, falling well short of analysts' forecast of $1.27, polled by research firm First Call. Operating numbers include results from its property and casualty unit, which it has agreed to sell to Bermuda-based ACE Ltd for $3.45 billion in cash.

Last year, operating income was $255 million, or $1.17 per share, excluding the gain from the sale of the unit. Ahead of the earnings announcement, which came after market close, Cigna shares rose $4.19, or about 5 percent, to $91.38 on the New York Stock Exchange.

Consolidated revenues fell slightly to $5.40 billion from $5.41 billion, despite a strong performance of its health care, life and disability benefits segment that posted a 20 percent increase in profits to $157 million.

Its employee retirement benefits and investment services income rose to $63 million from $61 million. However, its international life, health and employee benefits unit posted a steep decline in results with operating income of $3 million compared with $9 million from the same quarter last year.

Cigna's property and casualty operations earned $18 million, down from $41 million from last year. The segment was hurt by $15 million in losses largely related to additional charges for hurricanes Georges and Mitch. The sale of the unit, meanwhile, remains on schedule for a mid-year closing, Chief Executive Wilson Taylor said.