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EXHIBIT NO. 11
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THE PROGRESSIVE CORPORATION
COMPUTATION OF EARNINGS PER SHARE
(millions - except per share amounts)
Years Ended December 31, 1998 1997 1996
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Per Per Per
Amount Share Amount Share Amount Share
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Basic:
Net income $456.7 $400.0 $313.7
Less: Preferred stock dividends -- -- (3.5)
Excess Preferred Stock liquidation
price over carrying value -- -- (2.9)
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$456.7 $6.30 $400.0 $5.56 $307.3 $4.29
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Average shares outstanding 72.5 72.0 71.6
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Diluted:
Net income $456.7 $400.0 $313.7
Less: Preferred stock dividends -- -- (3.5)
Excess Preferred Stock liquidation
price over carrying value -- -- (2.9)
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$456.7 $6.11 $400.0 $5.31 $307.3 $4.14
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Average shares outstanding 72.5 72.0 71.6
Net effect of dilutive stock options 2.2 3.3 2.6
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Total 74.7 75.3 74.2
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