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 Ended March 31, --------------------------------------------------------------------------------------- 1997 1996 ----------------------------------- ------------------------------------------ Per Per Amount Share Amount Share -------------- ------------ ---------------- -------------- PRIMARY: Net income $76.5 $63.3 Less: Preferred stock dividends -- (2.2) -------------- ---------------- Income available to common shareholders $76.5 $1.02 $61.1 $.82 ============== ============ ================ ============== Average shares outstanding 71.7 72.2 Net effect of dilutive stock options 3.1 2.4 -------------- ---------------- Total 74.8 74.6 ============== ================ FULLY DILUTED: Net income $76.5 $63.3 Less: Preferred stock dividends -- (2.2) -------------- ---------------- Income available to common shareholders $76.5 $1.02 $61.1 $.82 ============== ============ ================ ============== Average shares outstanding 71.7 72.2 Net effect of dilutive stock options 3.1 2.4 -------------- ---------------- Total 74.8 74.6 ============== ================