1 EXHIBIT NO. 12 -------------- COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 2 EXHIBIT 12 THE PROGRESSIVE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (millions) (unaudited) Twelve Months Ended December 31, ---------------------------------------- 1996 1995 ------------ ------------- Income before income taxes $441.7 $345.9 ------------ ------------- Fixed Charges: Interest and amortization on indebtedness 61.5 57.1 Portion of rents representative of the interest factor 4.5 4.2 ------------ ------------- Total fixed charges 66.0 61.3 ------------ ------------- Total income available for fixed charges $507.7 $407.2 ============ ============= Ratio of earnings to fixed charges 7.7 6.6 ============ =============