Despite enrollment declines, Health Net Inc. said gains from higher premiums and government contracts enabled it to report a profit in the first quarter compared with a loss a year earlier.

The health insurer also announced a strategic review led by a former WellPoint Inc. chief financial officer.

Late Tuesday, the Woodland Hills company reported net income of $22 million (21 cents per share), compared with a net loss of $35.7 million (-33 cents) a year ago. Revenue increased 3 percent to $3.93 billion.

Excluding severance and other charges, the company had per share earnings of 41 cents. Analysts surveyed by Thomson Reuters on average expected earnings of 35 cents on revenue of $3.91 billion.

Membership fell 7.5 percent in the quarter overall, with commercial risk enrollment down 9.8 percent but Medicare Advantage membership up 2.2 percent.

“Our results reflect planned improvements in our commercial and Medicare operations in addition to our ongoing focus on reducing administrative expenses,” Chief Executive Jay Gellert said in a statement.

The company tempered its 2009 outlook, expecting net income of between $1.85 and $2.10 per share on revenue between $15.5 billion and $16 billion. Analysts are expecting $2.03 per share net income on revenue of $15.6 billion.

The company confirmed that it had brought on as a consultant David Colby, who is widely respected on Wall Street as a turnaround expert but left his WellPoint CFO position in 2007 after code of conduct violations on a personal matter.

“Mr. Colby has a proven track record of enhancing relationships with the investment community and maximizing shareholder returns,” a spokeswoman said. WellPoint, the nation’s largest health insurer by membership, is the parent of Anthem Blue Cross.

Health Net shares were up 40 cents, or 2.4 percent, to $10.15 in midday trading on the New York Stock Exchange.