1 EXHIBIT NO. 12 -------------- COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 2 THE PROGRESSIVE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (millions) (unaudited) Nine Months ended September 30, ------------------------------------ 1998 1997 ---------------- ---------------- Income before income taxes: $ 552.0 $ 426.6 --------- -------- Fixed charges: Interest and amortization of indebtedness(1) 48.2 48.4 Portion of rents representative of the interest factor 5.0 3.8 --------- -------- Total fixed charges 53.2 52.2 --------- -------- Total income available for fixed charges $ 605.2 $ 478.8 ========= ======== Ratio of earnings to fixed charges 11.4 9.2 ========= ======== (1) Excludes interest capitalized of $2.2 million for the nine months ended September 30, 1998; no interest was capitalized in 1997.