The Hartford Financial Services Group, Inc. provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers workers' compensation, property, automobile, liability, umbrella, bond, marine, livestock, and reinsurance; and customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channel and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. This segment distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers investment products for retail and retirement accounts; exchange-traded products through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers; and investment management and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	22,356	24,553	26,560	28,287.9	29,991.6	31,260	31,260	31,260
Revenue % Chg.	0%	9.8%	8.2%
EBIT	2,482	3,319	4,075	4,799.9	4,891.4	5,034.1	5,034.1	5,034.1
EBIT Margin	11.1%	13.5%	15.3%
Tax Rate	19.6%	18.9%	19.2%
NOPAT	1,995.9	2,691.3	3,293.7	3,854.3	3,918.8	4,034	4,034	4,034
NOPAT Margin	8.9%	11%	12.4%	13.6%	13.1%	12.9%	12.9%	12.9%
D&A	547	425	248	675.7	716.4	746.7	746.7	746.7
D&A / Revenue	2.4%	1.7%	0.9%
Capex	-175	-215	-145	-215.9	-228.9	-238.6	-238.6	-238.6
Capex / Revenue	-0.8%	-0.9%	-0.5%
Chg. NWC	934	920	2,178	1,520.5	1,612.1	1,680.2	1,680.2	1,680.2
Chg. NWC / Revenue	4.2%	3.7%	8.2%
Unlevered FCF (UFCF)	3,301.9	3,821.3	5,574.7	5,834.6	6,018.3	6,222.3	6,222.3	6,222.3
UFCF % Chg.	-30.7%	15.7%	45.9%	4.7%	3.1%	3.4%	—	—
PV of UFCF	—	—	—	5,393.8	5,143.4	4,916	4,544.6	4,201.2
Sum of PV of UFCF	—	—	—	5,393.8	10,537.2	15,453.2	19,997.7	24,199

Cost of Debt
Tax Rate
After Tax Cost of Debt	4%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.7%
Total Debt	4,511
Market Cap	37,645.7
Total Capital	42,156.7
Debt Weighting	10.7%
Equity Weighting	89.3%
WACC	8.2%

Exit Multiple EV/FCF
Terminal Value	42,197.7
PV of Terminal Value	26,339
Cumulative PV of UFCF	24,199
Net Debt	4,218
Equity Value	46,320
Shares Outstanding	278.7
Implied Share Price	166.2
Current Share Price	133
Implied Upside / (Downside)	24.9%

The Hartford Insurance Group, Inc.