1 EXHIBIT 11 THE PROGRESSIVE CORPORATION AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (millions - except per share amounts) (unaudited) Three Months Nine Months -------------------------------- ------------------------------- Periods Ended September 30, 1995 1994 1995 1994 -------------------------------- ------------------------------- Per Per Per Per Amount Share Amount Share Amount Share Amount Share -------------------------------- ------------------------------- PRIMARY: Net income $62.5 $64.8 $184.1 $173.4 Less: Preferred stock (2.1) (2.1) (6.3) (6.5) dividends ---------------------- ------------------------ Income available to common shareholders $60.4 $.81 $62.7 $.85 $177.8 $2.40 $166.9 $2.25 ================================ =============================== Average shares outstanding 72.0 71.3 71.8 71.7 Net effect of dilutive stock options 2.3 2.6 2.3 2.4 ---------------------- ------------------------ Total 74.3 73.9 74.1 74.1 ====================== ======================== FULLY DILUTED: Net income $62.5 $64.8 $184.1 $173.4 Less: Preferred stock dividends (2.1) (2.1) (6.3) (6.5) Income available to common ---------------------- ------------------------ shareholders $60.4 $.81 $62.7 $.85 $177.8 $2.39 $166.9 $2.25 ================================ =============================== Average shares outstanding 72.0 71.3 71.8 71.7 Net effect of dilutive stock options 2.4 2.6 2.6 2.5 ---------------------- ------------------------ Total 74.4 73.9 74.4 74.2 ====================== ========================