1 EXHIBIT NO. 11 -------------- COMPUTATION OF EARNINGS PER SHARE 2 EXHIBIT 11 THE PROGRESSIVE CORPORATION AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (millions - except per share amounts) (unaudited) Three Months Ended March 31, ---------------------------------------------------------------- 1996 1995 -------------------------- ------------------------------- Per Per Amount Share Amount Share ------------ ------ -------------- ---------- PRIMARY: Net income $63.3 $60.7 Less: Preferred stock dividends (2.2) (2.1) ----------- -------------- Income available to common shareholders $61.1 $.82 $58.6 $.79 =========== ======= ============== ========== Average shares outstanding 72.2 71.5 Net effect of dilutive stock options 2.4 2.5 ----------- -------------- Total 74.6 74.0 =========== ============== FULLY DILUTED: Net income $63.3 $60.7 Less: Preferred stock dividends (2.2) (2.1) =========== ============== Income available to common shareholders $61.1 $.82 $58.6 $.79 =========== ======= ============== ========== Average shares outstanding 72.2 71.5 Net effect of dilutive stock options 2.4 2.6 ----------- -------------- Total 74.6 74.1 =========== ==============