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.