The Company's operating segments include the following: (i) Insurance, which includes the businesses of the Self-Employed Agency Division; the Student Insurance Division; the Life Insurance Division (formerly the Company's OKC Division); the Senior Market Division; and the National Motor Club Division (until sold on July 27, 2000); (ii) Financial Services, which includes the businesses of Academic Management Services Corp., the Company's investment in Healthaxis, Inc., the business of the Company's Third Party Administration ("TPA") unit and (iii) Other Key Factors, which includes investment income not allocated to the other segments, interest expense on corporate debt, general expenses relating to corporate operations, realized gains or losses on sale of investments, the AMLI operations, variable stock compensation and goodwill amortization. Net investment income is allocated to the Insurance segment based on policy liabilities. The interest rate for the allocation is based on a high credit quality investment portfolio with a duration consistent with the duration of the segment's policy liabilities.
occurred during 2001), the Self Employed Agency Division's overall operating profit margin will be negatively impacted by the higher commission expense associated with first year premium revenue.
Academic Management Services Corp. For the year ended December 31, 2001, UICI's Academic Management Services Corp. subsidiary ("AMS") reported operating income of $5.4 million compared to an operating loss of $(24.6) million for the comparable period in 2000. Set forth below is a summary comparative statement of operations for AMS for the year ended December 31, 2001 and 2000:
AMS sold $474.0 million and $765.0 million principal amount of student loans during the year ended December 31, 2001 and 2000, respectively, from which AMS generated gains on net sales in the amount of $11.3 million and $7.8 million, respectively. While AMS sold a lesser principal amount of loans in 2001 than in 2000, the higher net gain in 2001 resulted from lower deferred loan origination costs associated with sold loans in 2001 compared to 2000.
Investment income. Investment income increased to $89.8 million in 2000 from $82.9 million in 1999, an increase of $6.9 million, or 8%. The increase was due to increased earnings from the Company's investment in AMLI Residential Properties Trust, together with an increase in investment income from restricted cash held at AMS for a full year in 2000. AMS Investment Group, Inc. was acquired in July 1999.
Other expenses. Other expenses increased to $117.1 million in 2000 from $114.3 million in 1999, an increase of $2.8 million. The increase was primarily due to increased administrative expenses incurred at the Company's AMS division due to management transition relocation of AMS' headquarters and the write-off of various development and capitalized costs.
Student Insurance Division. The Student Insurance Division incurred an operating loss of $(1.9) million in 2000 compared to operating income of $49,000 in 1999. The loss in 2000 reflected increased expenses associated with new system implementations and lower margins resulting from increased loss ratios on policies sold in the 1998-1999 policy year. Revenue for the Student Insurance Division increased to $111.5 million in 2000 from $108.0 million in 1999, an increase of $3.5 million, or 3%.
The Company's primary sources of cash have been premium revenues from policies issued, investment income, fees and other income, and borrowings to fund student loans. The primary uses of cash have been payments for benefits, claims and commissions under those policies, operating expenses and the funding of student loans. During 2001, the Company generated net cash from operations on a consolidated basis in the amount of $189.8 million. Net cash used in operations totaled $21.3 million in 2000 and $58.3 million in 1999.