* H1 pretax profit 1.32 bln sterling vs 949 million sterling * Says capital position and ratings remain strong
* FD says H2 started well, wary of conditions changing
(Adds company comment, details)
By Rhys Jones
LONDON, Sept 24 (Reuters) - Lloyds of London, the specialist insurance market, posted a 39 percent rise in first-half profit, reflecting a relatively low level of catastrophe claims, and said the second half had started well.
Pretax profit rose to 1.32 billion pounds ($2.2 billion) from 949 million in the same period last year, the world's oldest and biggest insurance market said on Thursday.
Lloyds said its investment return more than doubled to 708 million pounds during the period and the trend had continued.
"The second half has been positive so far, with investment income going well with bond spreads tightening and equity markets pushing up," Finance Director Luke Savage told Reuters in an interview.
"For the full year we expect to deliver a solid set of numbers but nothing too spectacular."
Lloyd's said its premiums rose 35 percent in the first half, with the value of its assets largely flat at 2 billion.
It added that its conservative approach had ensured its capital position and ratings remained strong but said it was wary that recent relatively good conditions could turn sour.
"Things could run out of steam because the investment climate is still tough," said Savage.
"Even if the equity market rally continues, we expect to see a sideways drift in underwriting unless there is a major event such as a wind storm or man-made catastrophe."
Savage said more catastrophe claims tend to be made during hurricane season, which falls between June and November, and said the U.S. windstorm season continued to pose a threat to the insurance industry. (Editing by Matt Scuffham and David Holmes) ($1=.6082 Pound)