Icahn has not yet made any demands as he supports the insurer's move to cut costs and sell more products directly to consumers, the report added. (https://on.wsj.com/3uiS2nS)
Allstate and Icahn Capital did not immediately respond to Reuters requests for comment.
Shares of Allstate rose as much as 1.4% after the news surfaced. The company has a market value of nearly $40.46 billion.
(Reporting by Sahil Shaw in Bengaluru; Editing by Shinjini Ganguli)