1 EXHIBIT NO. 11 -------------- COMPUTATION OF EARNINGS PER SHARE 2 THE PROGRESSIVE CORPORATION AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (millions - except per share amounts) (unaudited) Three Months Six Months ----------------------------------------------------------------------------- Periods Ended June 30, 1994 1993 1994 1993 ----------------------------------------------------------------------------- Per Per Per Per Amount Share Amount Share Amount Share Amount Share ----------------------------------------------------------------------------- PRIMARY: Net income $60.5 $79.7 $108.6 $131.3 Less: Preferred stock dividends (2.1) (2.4) (4.4) (4.7) ------- ------- ------- ------- Income available to common shareholders $58.4 $ .79 $77.3 $1.11 $104.2 $1.40 $126.6 $1.82 ============================================================================= Average shares outstanding 71.5 67.1 71.8 67.1 Net effect of dilutive stock options 2.3 2.3 2.4 2.4 ------- ------- ------- ------- Total 73.8 69.4 74.2 69.5 ======= ======= ======= ======= FULLY DILUTED: Net income $60.5 $79.7 $108.6 $131.3 Less: Preferred stock dividends (2.1) (2.4) (4.4) (4.7) ------- ------- ------- ------- Income available to common shareholders $58.4 $ .79 $77.3 $1.11 $104.2 $1.40 $126.6 $1.82 ============================================================================= Average shares outstanding 71.5 67.1 71.8 67.1 Net effect of dilutive stock options 2.4 2.4 2.4 2.4 ------- ------- ------- ------- Total 73.9 69.5 74.2 69.5 ======= ======= ======= =======