The bug is one of the Cardinal beetles.
The lupin is what is called 'fasciated' At some point there has been damage to the growing point and two (or more) stems have fused producing that effect. Sadly it is not genetic so will not repeat next year.

thankyou owdboggy, im intruiged to see how it flowers.
the beasties dont bother me as long as i know what it is, do they damage plants or is it a garden keeper??

Cardinal bugs are friends.

Andrea those beasties are definitely your friend. I asked the same question back in 2011.
Here's a link to the question, plenty about the there. http://www.growsonyou.com/question/show/54062

thanks scottish, great info, so glad i never squished it