The New York State Teachers' Retirement System, Albany, lost about $105 million on its holdings of insurance giant American International Group, New York, and $32 million on its holdings of Marsh & McLennan Cos., Inc., New York, since it was publicly announced two weeks ago that the two insurance giants are under investigation for rigging bids for insurance contracts and paying contingency fees to brokers. As of Sept. 30, the $77 billion system owned 8.55 million shares of AIG and 1.64 million shares of Marsh & McLennan. Shares of AIG, which is facing federal criminal charges, were trading at $56.36 as of 2 p.m. EDT today, down from $67.99 Sept. 30. Marsh & McLennan's shares were trading at $26.94 as of 2 p.m. EDT today, down from the $45.76 as of Sept. 30. John Cordillo, system spokesman, said the fund does not comment on specific holdings and added that most of the shares of AIG and Marsh McLennan were in passive index funds, but declined to be more specific.