Friends' savers are missing out on �50m

Members received shares when the mutual floated in July 2001, but so far 131,000 eligible people have not applied.

Qualifying members were entitled to at least 200 shares each. Average payouts, however, reached 550 shares.

Any of the 51 million shares not allocated by 9 July will be sold, the firm said. Savers will then be given cash, but must apply by July 2013.

Over 940 million shares were issued at the time of demutualisation to 1.7 million entitled former members.

Shares were initially priced at 225p, but are now trading at about 150p.

Qualifying members

To be eligible for the shares, with-profits policyholders who were resident in the UK must have had their policies with the firm from 4 May 2000 until 6 June 2001.

They would have originally taken them out with either Friends Provident Life Office, the United Kingdom Temperance or General Provident Institution.

The rules for policyholders living overseas are different.

If they were resident overseas on 4 May 2001, they should be entitled to cash not shares.