. . . Exhibit No. 12 THE PROGRESSIVE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (millions) (unaudited) Years Ended December 31, - ----------------------------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 1998 -------- ------ ------ ------ ------ Income before income taxes $981.4 $587.6 $31.8 $412.2 $661.1 -------- ------ ------ ------ ------ Fixed Charges: Interest and amortization on indebtedness 75.1 53.4 81.1 79.8 64.6 Portion of rents representative of the interest factor 5.6 7.4 8.0 6.8 6.7 -------- ------ ------ ------ ------ Total fixed charges 80.7 60.8 89.1 86.6 71.3 -------- ------ ------ ------ ------ Total income available for fixed charges(1) $1,062.0 $647.7 $118.0 $495.6 $728.9 ======== ====== ====== ====== ====== Ratio of earnings to fixed charges 13.2 10.7 1.3 5.7 10.2 ======== ====== ====== ====== ====== (1) Excludes interest capitalized, net of amortized interest, of $.1 million, $.7 million, $2.9 million, $3.2 million, and $3.5 million for the years ended December 31, 2002, 2001, 2000, 1999 and 1998, respectively.